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Is Wintrust Financial (WTFC) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Wintrust Financial (WTFC - Free Report) is a stock many investors are watching right now. WTFC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.49, which compares to its industry's average of 9.83. WTFC's Forward P/E has been as high as 17.11 and as low as 9.26, with a median of 13.04, all within the past year.
We also note that WTFC holds a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WTFC's industry has an average PEG of 0.93 right now. Within the past year, WTFC's PEG has been as high as 1.01 and as low as 0.54, with a median of 0.72.
We should also highlight that WTFC has a P/B ratio of 1.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WTFC's current P/B looks attractive when compared to its industry's average P/B of 1.99. WTFC's P/B has been as high as 1.47 and as low as 1.02, with a median of 1.25, over the past year.
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 2.76. This compares to its industry's average P/S of 2.86.
Finally, our model also underscores that WTFC has a P/CF ratio of 9.29. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. WTFC's P/CF compares to its industry's average P/CF of 15.31. WTFC's P/CF has been as high as 10.61 and as low as 7.04, with a median of 9.17, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Wintrust Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WTFC feels like a great value stock at the moment.
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Is Wintrust Financial (WTFC) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Wintrust Financial (WTFC - Free Report) is a stock many investors are watching right now. WTFC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.49, which compares to its industry's average of 9.83. WTFC's Forward P/E has been as high as 17.11 and as low as 9.26, with a median of 13.04, all within the past year.
We also note that WTFC holds a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WTFC's industry has an average PEG of 0.93 right now. Within the past year, WTFC's PEG has been as high as 1.01 and as low as 0.54, with a median of 0.72.
We should also highlight that WTFC has a P/B ratio of 1.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WTFC's current P/B looks attractive when compared to its industry's average P/B of 1.99. WTFC's P/B has been as high as 1.47 and as low as 1.02, with a median of 1.25, over the past year.
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 2.76. This compares to its industry's average P/S of 2.86.
Finally, our model also underscores that WTFC has a P/CF ratio of 9.29. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. WTFC's P/CF compares to its industry's average P/CF of 15.31. WTFC's P/CF has been as high as 10.61 and as low as 7.04, with a median of 9.17, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Wintrust Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WTFC feels like a great value stock at the moment.