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Why Wintrust Financial (WTFC) Should be Added to Portfolio
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With the earnings season almost in its last phase, the Finance sector seems to be one of the best performers. So, we thought of bringing up a stock from the sector that reflects strong fundamentals and solid long-term growth opportunity.
Wintrust Financial Corporation (WTFC - Free Report) is one such stock that not only beat estimates this time, but also has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 increased 4.9% and 4.0%, respectively.
Further, shares of this Zacks Rank #1 (Strong Buy) stock have gained 1.5% in the last six months, outperforming 3.2% decline recorded by the industry it belongs to.
Notably, Wintrust Financial has a number of other aspects that make it an attractive investment option.
Revenue Strength: Wintrust Financial continues to make steady progress toward improving its top line. Since 2013, the company has recorded a consistent rise in its sales, witnessing compound annual growth rate (CAGR) of nearly 10.1%.
The company’s projected sales growth (F1/F0) of 9.89% (as against the S&P 500 average of about 5.18%) indicates constant upward momentum in revenues.
Earnings Growth: Wintrust Financial witnessed earnings growth of 11.19% in the last three–five years. In addition, the company’s long-term (three–five years) estimated EPS growth rate of 13.5% promises rewards for investors over the long run.
Leverage: Wintrust Financial’s debt/equity ratio is pegged at 0.36 against the industry average of 0.46, reflecting lower debt burden. It highlights the company’s sound financial flexibility.
Stock is Undervalued: Wintrust Financial has P/E and P/B ratios of 17.43x and 1.54x compared to the S&P 500 average of 19.00x and 3.21x, respectively. Based on these ratios, the stock seems undervalued.
Stocks to Consider
The Bank of New York Mellon Corporation (BK - Free Report) , with a Zacks Rank #2 (Buy), has been witnessing upward estimate revisions for the last 30 days. So far this year, the company’s share price has been up more than 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BancFirst Corporation (BANF - Free Report) has been witnessing upward estimate revisions for the last 30 days. Also, the company’s shares have risen nearly 7.7% over the last six months. It presently sports a Zacks Rank #1.
TriCo Bancshares (TCBK - Free Report) has been witnessing upward estimate revisions for the last 30 days. Over the last six months, the company’s share price has been up more than 2%. It carries a Zacks Rank #2.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
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Why Wintrust Financial (WTFC) Should be Added to Portfolio
With the earnings season almost in its last phase, the Finance sector seems to be one of the best performers. So, we thought of bringing up a stock from the sector that reflects strong fundamentals and solid long-term growth opportunity.
Wintrust Financial Corporation (WTFC - Free Report) is one such stock that not only beat estimates this time, but also has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 increased 4.9% and 4.0%, respectively.
Further, shares of this Zacks Rank #1 (Strong Buy) stock have gained 1.5% in the last six months, outperforming 3.2% decline recorded by the industry it belongs to.
Notably, Wintrust Financial has a number of other aspects that make it an attractive investment option.
Revenue Strength: Wintrust Financial continues to make steady progress toward improving its top line. Since 2013, the company has recorded a consistent rise in its sales, witnessing compound annual growth rate (CAGR) of nearly 10.1%.
The company’s projected sales growth (F1/F0) of 9.89% (as against the S&P 500 average of about 5.18%) indicates constant upward momentum in revenues.
Earnings Growth: Wintrust Financial witnessed earnings growth of 11.19% in the last three–five years. In addition, the company’s long-term (three–five years) estimated EPS growth rate of 13.5% promises rewards for investors over the long run.
Leverage: Wintrust Financial’s debt/equity ratio is pegged at 0.36 against the industry average of 0.46, reflecting lower debt burden. It highlights the company’s sound financial flexibility.
Stock is Undervalued: Wintrust Financial has P/E and P/B ratios of 17.43x and 1.54x compared to the S&P 500 average of 19.00x and 3.21x, respectively. Based on these ratios, the stock seems undervalued.
Stocks to Consider
The Bank of New York Mellon Corporation (BK - Free Report) , with a Zacks Rank #2 (Buy), has been witnessing upward estimate revisions for the last 30 days. So far this year, the company’s share price has been up more than 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BancFirst Corporation (BANF - Free Report) has been witnessing upward estimate revisions for the last 30 days. Also, the company’s shares have risen nearly 7.7% over the last six months. It presently sports a Zacks Rank #1.
TriCo Bancshares (TCBK - Free Report) has been witnessing upward estimate revisions for the last 30 days. Over the last six months, the company’s share price has been up more than 2%. It carries a Zacks Rank #2.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>