Stephanie Link made three portfolio moves on CNBC’s Halftime Report on October 23, 2026. The chief investment strategist and portfolio manager at Hightower Advisors started a position in Zscaler (NASDAQ:ZS), added to Wells Fargo (NYSE:WFC) and sold Dover (NYSE:DOV) to raise the cash for both. Her reasoning comes down to valuation and to stocks she believes the market has left behind.
Why Link Is Adding to Wells Fargo Now
For years, Wells Fargo operated under a Federal Reserve asset cap, a regulatory limit on how large the bank could grow. That cap has been raised.
“They’re making progress post asset cap lift. I think they’re going to gain market share going forward. Their ROTCE targets of 17 to 18% are actually not aggressive in my mind. I think they can actually do better than that,” Link said.
ROTCE, or return on tangible common equity, measures how much profit a bank earns on its shareholders’ capital after stripping out goodwill and other intangible assets. Wells Fargo’s ROTCE reached 17.7% vs 15.2% a year earlier, according to its second-quarter earnings release. Average loans rose 12% and average deposits rose 10% from a year ago, growth the cap had stopped.
She added: “And their guidance for net interest income was better than I thought. For the full year, net interest margins expanded for the first time in several quarters.” Net interest income is what a bank earns on loans and securities minus what it pays depositors. Net interest margin shows that spread as a percentage of earning assets, so a wider margin means each dollar lent earns more. Link said the stock trades at 1.5 times book value. Shares stood at $82.36 after hours, down 10.17% this year.
Zscaler Trails Its Cybersecurity Rivals by a Wide Margin
“Zscaler is only up 9% year to date when the other two are up over 120% year to date. It trades at a discounted valuation, 50% discount EV to sales versus a historic rate,” Link said. EV to sales compares a company’s enterprise value (market value plus debt, minus cash) to its revenue, a common benchmark for software companies with thin GAAP profits.
Per the CNBC segment, Zscaler’s addressable market within existing customers is about $15 billion, roughly 4 times its annual recurring revenue (ARR). Fiscal fourth-quarter revenue rose 24.9% to $898.2M, and ARR climbed 25% to $3.77B. Fiscal 2027 guidance calls for slower revenue growth of 16.6-17.5%, which may help explain why shares fell behind CrowdStrike (NASDAQ:CRWD) and Palo Alto Networks (NASDAQ:PANW). CrowdStrike’s ARR grew 25% to $5.84B, while Palo Alto’s next-generation security ARR rose 63% YoY to $9.10B. More on Zscaler’s strategy is available on its investor relations site.
Her figures may reflect a different point in time. Zscaler gained 22.92% over the past week alone.
| Stock | Link’s YTD Figure | Latest Price | YTD Change (Oct. 23) |
|---|---|---|---|
| Wells Fargo | Down about 11% | $82.36 | Down 10.17% |
| Zscaler | Up 9% | $254.92 | Up 13.34% |
| CrowdStrike | Up over 120% | N/A | Up 120.03% |
| Palo Alto Networks | Up over 120% | N/A | Up 106.46% |
| Dover | N/A | $199.20 | Up 2.79% |
Link Sold Dover to Fund Cheaper Ideas
“I own a lot of industrials that are down much more. I want to add to those. And then I just don’t have enough cash to buy some of these other things that I want to be adding to, which I think are much cheaper, much more beaten down.”
Link framed the sale as a cash decision. Dover’s third-quarter report on October 22, 2026 showed 7% organic growth, orders up 16% and adjusted EPS of $2.88. Management narrowed full-year adjusted EPS guidance to $10.60 to $10.75, with backlog 35% higher than a year earlier.
Lessons Everyday Investors Can Borrow
Two habits stand out. Every portfolio has limited cash, so adding a new idea often means cutting a solid holding. Link sold a growing company because she ranked other opportunities higher. She also measures laggards against peers. Investors can run that same test by comparing multiples, growth rates and guidance to judge whether a laggard is cheap or simply slowing.
What to Watch Next
Link is hunting for value in names she thinks the market has left behind. Zscaler’s fiscal first-quarter report will show whether revenue lands within its $935M-$939M guide, and Wells Fargo’s coming results will test her view that its ROTCE targets are conservative.