Squawk on the Street Cramer's Morning Take: Wells Fargo 5/14/25
May 14, 2025
Discover the strategic reasons for trimming stakes in major financial holdings. The discussion dives into Wells Fargo's impressive $40 billion buyback while evaluating its recent stock performance. A comparison with Capital One reveals promising growth prospects and optimistic analyst sentiment. The hosts emphasize the importance of a balanced investment portfolio, suggesting opportunities in other sectors like GE.
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Trim Positions for Portfolio Flexibility
- It's wise to trim some positions in stocks like Wells Fargo despite strong momentum.
- Managing portfolio size allows capital flexibility to buy other opportunities like GE Vrenova on dips.
Wells Fargo's Strong Momentum
- Wells Fargo has performed strongly, rising 8% year-to-date, boosted by a large $40 billion buyback.
- The stock's momentum reflects strong fundamentals but requires portfolio sizing to manage exposure.
Capital One's Promising Growth
- Capital One looks more attractive due to a completed deal and strong earnings growth projections.
- Analysts expect over 16% CAGR in EPS out to 2028, highlighting robust future potential.