Have Investors Already Priced In Wintrust Financial Corporation’s (NASDAQ:WTFC) Growth?
Wintrust Financial Corporation (NASDAQ:WTFC), operating in the financial services industry based in United States, saw a decent share price growth in the teens level on the NasdaqGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Wintrust Financial’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Wintrust Financial
What is Wintrust Financial worth?
According to my valuation model, the stock is currently overvalued by about 65%, trading at $83.39 compared to my intrinsic value of $50.43. Not the best news for investors looking to buy! In addition to this, it seems like Wintrust Financial’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Wintrust Financial?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 37.11% over the next couple of years, the future seems bright for Wintrust Financial. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Wintrust Financial’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe Wintrust Financial should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on Wintrust Financial for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for Wintrust Financial, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Wintrust Financial. You can find everything you need to know about Wintrust Financial in the latest infographic research report. If you are no longer interested in Wintrust Financial, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
