Shares of Wells Fargo (WFC) have just experienced their longest losing streak in more than eight years.
However, the stock is undervalued, and with earnings expected to increase, investors should take advantage and buy it.
To get a better picture of Wells Fargo’s undervaluation and expected earnings increase, let’s use a method used by one of the most successful investors of all time, Peter Lynch. He would create a chart that showed the stock price and earnings per share together and would then equate $1 in earnings per share to $15 in stock price.
