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Why Wintrust Financial (WTFC) Stock is an Attractive Pick?

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With the earnings season almost in the last phase, the Finance sector seems to be one of the best performers. So, we thought of bringing up a stock from the sector that reflects strong fundamentals and solid long-term growth opportunity.

Wintrust Financial Corporation (WTFC - Free Report) is one such stock that not only beat estimates this time, but also has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 increased 3.1% and 1.6%, respectively.

Further, shares of this Zacks Rank #1 (Strong Buy) stock have gained 16.7% in the last six months, outperforming 14.8% growth recorded by the Zacks categorized Midwest Banks industry.



Notably, Wintrust Financial has a number of other aspects that make it an attractive investment option.

Revenue Strength: Wintrust Financial continues to make steady progress toward improving its top line. Since 2013, the company has recorded a consistent rise in its sales representing compound annual growth rate (CAGR) of nearly 10.1%.

The company’s projected sales growth (F1/F0) of 6.81% (as against the S&P 500 average of about 3.37%) indicates constant upward momentum in revenues.

Earnings Growth: Wintrust Financial witnessed earnings growth of 11.5% in the last three–five years. In addition, the company’s long-term (three–five years) estimated EPS growth rate of 10.5% promises rewards for investors over the long run.

Leverage: Wintrust Financial’s debt/equity ratio is pegged at 0.34 against the S&P 500 average of 0.93 and industry average of 0.44, displaying lower debt burden. It highlights the company’s sound financial flexibility.

Stocks to Consider

Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 30 days. Additionally, the stock jumped over 23.1% over the past six months. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Trust Corporation (NTRS - Free Report) has been witnessing upward estimate revisions for the last 30 days. Also, the company’s shares have risen nearly 13.7% over the last six months. It presently holds a Zacks Rank #2 (Buy).

The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 30 days. Over the last six months, the company’s share price has been up more than 15%. It carries a Zacks Rank #2.

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