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Are Investors Undervaluing Wintrust Financial (WTFC) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Wintrust Financial (WTFC - Free Report) . WTFC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that WTFC holds a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WTFC's PEG compares to its industry's average PEG of 0.96. Over the last 12 months, WTFC's PEG has been as high as 1.01 and as low as 0.59, with a median of 0.74.
We should also highlight that WTFC has a P/B ratio of 1.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.92. Within the past 52 weeks, WTFC's P/B has been as high as 1.47 and as low as 1.01, with a median of 1.24.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. WTFC has a P/S ratio of 2.6. This compares to its industry's average P/S of 2.94.
Finally, investors should note that WTFC has a P/CF ratio of 8.82. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.60. Over the past 52 weeks, WTFC's P/CF has been as high as 10.61 and as low as 6.98, with a median of 9.14.
These are only a few of the key metrics included in Wintrust Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WTFC looks like an impressive value stock at the moment.
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Are Investors Undervaluing Wintrust Financial (WTFC) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Wintrust Financial (WTFC - Free Report) . WTFC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that WTFC holds a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WTFC's PEG compares to its industry's average PEG of 0.96. Over the last 12 months, WTFC's PEG has been as high as 1.01 and as low as 0.59, with a median of 0.74.
We should also highlight that WTFC has a P/B ratio of 1.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.92. Within the past 52 weeks, WTFC's P/B has been as high as 1.47 and as low as 1.01, with a median of 1.24.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. WTFC has a P/S ratio of 2.6. This compares to its industry's average P/S of 2.94.
Finally, investors should note that WTFC has a P/CF ratio of 8.82. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.60. Over the past 52 weeks, WTFC's P/CF has been as high as 10.61 and as low as 6.98, with a median of 9.14.
These are only a few of the key metrics included in Wintrust Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WTFC looks like an impressive value stock at the moment.