Five analysts have increased their EPS estimates for our first pick, a midwestern bank, and our second recommendation is the sale of a previous idea.
Wintrust Financial (WTFC)
From Upside
With assets totaling $28 billion, Wintrust Financial (WTFC) operates more than 150 banking locations in Illinois, Indiana, and Wisconsin. The company also offers specialty finance and wealth-management services.
Wintrust has a history of using acquisitions to broaden its product line and footprint, most recently buying Utah-based Veterans First Mortgage in a deal expected to boost full-year 2018 earnings.
Wintrust acquired a mortgage banking unit a year ago, strengthening its presence in Montana.
Wintrust offers strong operating momentum and a reasonable valuation. Aided by a lower effective tax rate, analysts see per-share earnings surging 31% in 2018, including 27% growth in the March quarter and 23% in the June quarter.
With above-average scores in Quadrix for all six categories, Wintrust earns an Overall rank of 96, versus an average of 74 for 381 regional banks. Last month, Wintrust increased its quarterly per-share dividend 36% to $0.19, payable Feb. 22. Earning a Value score of 72, Wintrust is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, February 5, 2018