Last Updated: 15 Oct 2024
Executive Summary
Webster Financial Corporation (WBS) is a regional bank holding company with a market capitalization of $8.25 billion. The company has shown steady growth in recent years, with revenue and earnings increasing in each of the past five years. WBS is currently trading at $48.1, which is below its 52-week high of $52.04. The stock has a trailing PE ratio of 10.41 and a forward PE ratio of 8.37. Analysts are bullish on the stock, with a consensus rating of "Buy."
Company Overview
Webster Financial Corporation is the banking holding company for Webster Bank, a National Association that provides a variety of banking, investment, and financial services to individuals, families, and businesses in the United States. The company is headquartered in Waterbury, Connecticut. Webster Bank has over 150 branches and 300 ATMs in Connecticut, Massachusetts, New York, Rhode Island, and Vermont. The bank offers a range of products and services, including checking and savings accounts, loans, mortgages, and investment services.
Fundamental Analysis
Webster Financial Corporation has a strong financial profile. The company has a Tier 1 capital ratio of 10.5%, which is well above the regulatory minimum. WBS also has a low level of non-performing loans and a strong track record of profitability. The company's net income margin has averaged 1.1% over the past five years.
Technical Analysis
The technical analysis of WBS is mixed. The stock is currently trading below its 50-day and 200-day moving averages. However, the stock has been forming a bullish pattern over the past few months. The stock is currently testing the $48 level, which is a key support level. If the stock can break above this level, it could continue to move higher.
Short Term Outlook
The short-term outlook for WBS is positive. The stock is trading at a discount to its intrinsic value and has a strong technical setup. The stock could continue to move higher in the short term, especially if it can break above the $48 level.
Long Term Outlook
The long-term outlook for WBS is also positive. The company has a strong financial profile and a growing customer base. The company is also well-positioned to benefit from rising interest rates. The stock could continue to move higher in the long term, especially if the company can continue to grow its earnings.
Analyst Recommendations
Analysts are bullish on WBS. The consensus rating for the stock is "Buy." The average analyst target price is $56.07, which represents a potential upside of 16.6% from the current price.
