Wells Fargo & Co ( WFC ) shares are rising in Tuesday’s after-hours session after the company announced it’s no longer subject to asset growth restrictions imposed in 2018.

What Happened: Wells Fargo ( WFC ) said the board of governors of the Federal Reserve determined that Wells Fargo ( WFC ) has met all conditions required to remove the limits on growth in total assets imposed in its 2018 consent order.

“The Federal Reserve’s decision to lift the asset cap marks a pivotal milestone in our journey to transform Wells Fargo ( WFC ). We are a different and far stronger company today because of the work we’ve done,” said Charlie Scharf, CEO of Wells Fargo ( WFC ).

“In addition, we have changed and simplified our business mix, and we have transformed the management team and how we run the company. We have been methodically investing in the company’s future while improving our financial results and profile.”

Is WFC A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, with Wells Fargo ( WFC ), you'll notice earnings in its last quarter grew 2.42%. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Wells Fargo's ( WFC ) price to earnings ratio — a measure of how much an investor pays for the company's earnings — is projected to grow 15.77% in the current quarter when compared to last year. That places it above similar businesses JPMorgan Chase, Bank of America and HSBC Holdings in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Wells Fargo's ( WFC ) quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

WFC Price Action: Wells Fargo ( WFC ) shares were up 2.67% in after-hours, trading at $77.67 at the time of publication Tuesday, according to Benzinga Pro.

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