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Western Alliance (WAL) Gains But Lags Market: What You Should Know

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In the latest trading session, Western Alliance (WAL - Free Report) closed at $35.52, marking a +0.25% move from the previous day. This move lagged the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 4.19%.

Coming into today, shares of the bank holding company had lost 6.66% in the past month. In that same time, the Finance sector lost 1.33%, while the S&P 500 gained 2.12%.

Western Alliance will be looking to display strength as it nears its next earnings release. On that day, Western Alliance is projected to report earnings of $2.02 per share, which would represent a year-over-year decline of 15.48%. Meanwhile, our latest consensus estimate is calling for revenue of $660.8 million, up 5.19% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.23 per share and revenue of $2.62 billion, which would represent changes of -15.15% and +2.22%, respectively, from the prior year.

Any recent changes to analyst estimates for Western Alliance should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.88% lower. Western Alliance is currently a Zacks Rank #3 (Hold).

Investors should also note Western Alliance's current valuation metrics, including its Forward P/E ratio of 4.31. Its industry sports an average Forward P/E of 6.56, so we one might conclude that Western Alliance is trading at a discount comparatively.

We can also see that WAL currently has a PEG ratio of 0.42. 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. The Banks - West was holding an average PEG ratio of 0.5 at yesterday's closing price.

The Banks - West industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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