New 52-Wk High for Western Alliance - Analyst Blog


Shares of Western Alliance Bancorporation ( WAL ) touched a new 52-week high of $19.01 during its trading session on Sep 27. This denotes an increase over the previous high of $18.75 reached on Jul 25.  

Western Alliance Bancorporation closed the trading day on Sep 27 at $18.86, reflecting a solid year-to-date return of 84.9%. The trading volume for the session was 0.84 million shares. Further upside potential exists for this Zacks Rank #3 (Hold) multi-bank holding company as can be deduced from its earnings estimate revisions in the last 60 days and expected earnings growth of 68.4% for 2013.

Growth Drivers

Financial results for the second quarter 2013 for Western Alliance Bancorporation were impressive; shares since then have grown by 10.4%. Earnings per share at 31 cents represented an increase from the Zacks Consensus Estimate of 27 cents.

Net interest income in the quarter grew 16% while a fall of 73.9% was recorded for Western Alliance Bancorporation's provision for loan losses. Non-interest income increased 46.8% year over year.

Talking of balance sheet of Western Alliance Bancorporation, total assets grew by 20% in the quarter primarily due to an increase of 24.1% in loans while borrowings and total deposits were up by 20.5% and 16.7%, respectively. Loan to deposit ratio improved 640 basis points.

Based on solid financial performances and an average positive earnings surprise of 23.4% (considering trailing four quarters), possibility is high for Western Alliance Bancorporation to post solid results in the quarters ahead. Also, we have an Earnings ESP of +4.0% for 2013 and 8.3% for 2014.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for Western Alliance Bancorporation has increased by 2.5% to $1.25 for 2013 and by 1.5% to $1.32 for 2014, respectively.

Western Alliance Bancorporation currently has a market capitalization of $1.6 billion. Other stocks to watch out for in the industry are BofI Holding, Inc. ( BOFI ), with a Zacks Rank #1 (Strong Buy) while BBCN Bancorp, Inc. ( BBCN ) and City National Corporation ( CYN ), each hold a Zacks Rank #2 (Buy).

BBCN BANCORP (BBCN): Free Stock Analysis Report

BOFI HLDG INC (BOFI): Free Stock Analysis Report

CITY NATIONAL (CYN): Free Stock Analysis Report

WESTERN ALLIANC (WAL): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BBCN , BOFI , CYN , WAL

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