WSFS Financial Corporation (NASDAQ:WSFS), operating in the financial services industry based in United States, saw its share price hover around a small range of US$42.17 to US$45.36 over the last few weeks. But is this actually reflective of the share value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at WSFS Financial’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is WSFS Financial worth?
Great news for investors – WSFS Financial is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $56.34, but it is currently trading at US$42.94 on the share market, meaning that there is still an opportunity to buy now. However, given that WSFS Financial’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will WSFS Financial generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 39% over the next couple of years, the future seems bright for WSFS Financial. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since WSFS is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on WSFS for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WSFS. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on WSFS Financial. You can find everything you need to know about WSFS Financial in the latest infographic research report. If you are no longer interested in WSFS Financial, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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