Wintrust Financial (WTFC) Soars to a 52-Week High, Time to Cash Out?

Shutterstock photo

Have you been paying attention to shares of Wintrust Financial CorporationWTFC ? Shares have been on the move with the stock up 8.3% over the past month. WTFC hits a new 52-week high of $92.50 in the previous session. Wintrust Financial has gained 11.7% since the start of the year compared to the -1.5% move for the Finance sector and the 6.7% year-to-date return for its peer group.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 16, 2018, Wintrust Financial reported EPS of $1.4 versus the Zacks Consensus Estimate of $1.29 while it beat the consensus revenue estimate by 3.25%.

For the current fiscal year, Wintrust Financial is expected to post earnings of $5.81 per share on $1.31 billion in revenues. This represents a 32.05% change in EPS on a 13.85% change in revenues. For the next fiscal year, the company is expected to earn $6.37 per share on $1.41 billion in revenues. This represents a year-over-year change of 9.53% and 7.24%, respectively.

Valuation Metrics

Wintrust Financial may be at a 52-week high right now, but what might the future hold for WTFC? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Wintrust Financial has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 15.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 15.8X versus its peer group's average of 14.5X. Additionally, the stock has a PEG ratio of 1.17. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Wintrust Financial Corporation Price and Consensus

Wintrust Financial Corporation Price and Consensus | Wintrust Financial Corporation Quote

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Wintrust Financial currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Wintrust Financial passes the test. Thus, it seems as though WTFC shares could have potential in the weeks and months to come.

How Does Wintrust Financial Corporation Stack Up to the Competition?

Shares of Wintrust Financial Corporation have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Farmers National Banc FMNB , First Financial Bancorp. FFBC , and Chemical Financial Corporation CHFC , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.

The Zacks Industry Rank is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for WTFC, even beyond its own solid fundamental situation.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Wintrust Financial Corporation (WTFC): Free Stock Analysis Report

Chemical Financial Corporation (CHFC): Free Stock Analysis Report

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

Farmers National Banc Corp. (FMNB): Free Stock Analysis Report

To read this article on Zacks.com click here.

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 , Stocks
Referenced Symbols: WTFC , CHFC , FFBC , FMNB

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?