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What Makes Wintrust Financial a Hot Pick for Investors Now?


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Favorable economic data, recent Fed interest-rate hikes and tax-reform bill benefits have boosted investors' confidence in banking stocks. Therefore, some of these stocks are likely to be profitable additions to your portfolio backed by strong fundamentals and encouraging long-term prospects.

Wintrust Financial Corporation WTFC is one such stock. This Zacks Rank #2 (Buy) company has been witnessing upward estimate revisions, reflecting analysts' optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for both 2018 and 2019 moved up slightly.

Further, shares of Wintrust Financial have gained 4.7% year to date, outperforming the marginal increase 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 consistent rise in its sales, witnessing compound annual growth rate (CAGR) of nearly 10.4% in 2017.

The company's projected sales growth (F1/F0) of 10.27% (as against the S&P 500 average of about 4.94%) indicates constant upward momentum in revenues.

Earnings Growth: Wintrust Financial witnessed earnings growth of 11.12% 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. Moreover, the company recorded an average positive earnings surprise of 7.09% in the preceding four quarters.

Superior Return on Equity (ROE): Wintrust Financial's ROE of 9.49%, as compared with the industry average of 9.3%, reflects the company's commendable position over its peers.

Stock Looks Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score which 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 (Strong Buy) or 2, offer the best upside potential.

Stocks to Consider

BankUnited, Inc. BKU has been witnessing upward estimate revisions for the last 30 days. Further, the stock jumped more than 12% over the past six months. It currently carries a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Lakeland Financial Corporation LKFN has been witnessing upward estimate revisions for the last 90 days. Also, the company's shares have risen nearly 9.6% in a year's time. It currently carries a Zacks Rank #2.

First Financial Bancorp. FFBC has been witnessing upward estimate revisions for the last 60 days. Over the last six months, this Zacks #2 Ranked company's share price has been up more than 10%.

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BankUnited, Inc. (BKU): Free Stock Analysis Report

Wintrust Financial Corporation (WTFC): Free Stock Analysis Report

First Financial Bancorp. (FFBC): Free Stock Analysis Report

Lakeland Financial Corporation (LKFN): 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 Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: BKU , WTFC , FFBC , LKFN


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