Below is a chart of Wells Fargo (WFC) from 1973 to 2019 reflecting the year-over-year (YoY) percentage change.
In the last 12 months, WFC has declined approximately -22%, on a YoY basis. Below is the history of returns when WFC has declined by similar YoY levels.
Following a similar decline of -22%, had WFC been acquired and held for 2 years, the average return of +41% and median return was +41% with a high level of probability.
We’re assuming that no additional purchase is made for the stock and that the position is held at least two years.