Wells Fargo ( NYSE:WFC ) is a diversified financial services company. Shares rose materially during the quarter largely due to three tailwinds. First, the U.S. election results provided a boost to all bank stocks on expectations that industry regulatory burdens may ease. Second, higher interest rates and a steeper yield curve raised prospects for net interest margin ( NIM ) expansion. Third, the company took additional steps to address the "bogus account" scandal, including high-level management changes. The company's very low-cost deposit base, ubiquitous distribution, ample capital and diverse business lines further our continued confidence. Wells Fargo's stock trades at less than 14x expected earnings and a modest discount to our value estimate.
From Weitz Investment Management's Value Fund fourth quarter 2016 commentary .
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