We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Wintrust Financial Should be Added to Your Portfolio
Read MoreHide Full Article
In the Q2 earnings season, the Finance sector turned out to be one of the best performers. Particularly, benefits from a stabilizing economy and improving interest-rate scenario have well positioned the banking industry. Moreover, lower commercial tax rate are likely to boost banks’ profitability further.
In addition, relieving banks from some of the stringent requirements of the Dodd-Frank Act has made companies optimistic of their future earnings growth and raised investors’ sentiments as well. So, we thought of picking a stock from the sector that reflects strong fundamentals and has solid long-term growth opportunities.
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 2018 and 2019 moved up 2.9% and 2.2%, respectively.
Further, shares of this Zacks Rank #2 (Buy) company have gained 4.3% in the last six months compared with 5.8% growth 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 continued rise in its sales, witnessing five-year compound annual growth rate (CAGR) of nearly 10.4%.
The company’s projected sales growth (F1/F0) of 15.19 % (as against the industry average of about 8.14%) indicates constant upward momentum in revenues.
Earnings Growth: Wintrust Financial witnessed earnings growth of 13.26% 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 0.44 against the industry average of 0.46, reflecting lower debt burden. It highlights the company’s sound financial flexibility.
Superior Return on Equity (ROE): Wintrust Financial’s ROE of 10.62%, as compared with the industry average of 10.18%, underlines the company’s commendable position over its peers.
Stock is Undervalued: Stock is Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Stocks to Consider
Comerica (CMA - Free Report) has been witnessing upward estimate revisions for the last 30 days. Additionally, the stock jumped nearly 11.9%, year to date. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunTrust Banks, Inc. (STI - Free Report) has been witnessing upward estimate revisions, for the last 30 days. Year to date, the company’s share price has been up more than 11%. It currently flaunts a Zacks Rank of 1.
M&T Bank Corporation (MTB - Free Report) has been witnessing upward estimate revisions for the last 30 days. Also, this Zacks #2 Ranked company’s shares have rallied nearly 1.7%, so far, this year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Why Wintrust Financial Should be Added to Your Portfolio
In the Q2 earnings season, the Finance sector turned out to be one of the best performers. Particularly, benefits from a stabilizing economy and improving interest-rate scenario have well positioned the banking industry. Moreover, lower commercial tax rate are likely to boost banks’ profitability further.
In addition, relieving banks from some of the stringent requirements of the Dodd-Frank Act has made companies optimistic of their future earnings growth and raised investors’ sentiments as well. So, we thought of picking a stock from the sector that reflects strong fundamentals and has solid long-term growth opportunities.
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 2018 and 2019 moved up 2.9% and 2.2%, respectively.
Further, shares of this Zacks Rank #2 (Buy) company have gained 4.3% in the last six months compared with 5.8% growth 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 continued rise in its sales, witnessing five-year compound annual growth rate (CAGR) of nearly 10.4%.
The company’s projected sales growth (F1/F0) of 15.19 % (as against the industry average of about 8.14%) indicates constant upward momentum in revenues.
Earnings Growth: Wintrust Financial witnessed earnings growth of 13.26% 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 0.44 against the industry average of 0.46, reflecting lower debt burden. It highlights the company’s sound financial flexibility.
Superior Return on Equity (ROE): Wintrust Financial’s ROE of 10.62%, as compared with the industry average of 10.18%, underlines the company’s commendable position over its peers.
Stock is Undervalued: Stock is Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Stocks to Consider
Comerica (CMA - Free Report) has been witnessing upward estimate revisions for the last 30 days. Additionally, the stock jumped nearly 11.9%, year to date. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunTrust Banks, Inc. (STI - Free Report) has been witnessing upward estimate revisions, for the last 30 days. Year to date, the company’s share price has been up more than 11%. It currently flaunts a Zacks Rank of 1.
M&T Bank Corporation (MTB - Free Report) has been witnessing upward estimate revisions for the last 30 days. Also, this Zacks #2 Ranked company’s shares have rallied nearly 1.7%, so far, this year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>