Hancock Whitney Looks Moderately Undervalued Despite A More Challenging Environment

Jan. 25, 2023 8:43 PM ETHancock Whitney Corporation (HWC)1 Comment
Mark Dockray profile picture
Mark Dockray


  • Hancock Whitney has been reaping the benefits of higher interest rates and operating cost leverage, with the shares outperforming since my first article on the stock.
  • The environment for banks is getting tougher, but Hancock has the right kind of deposit base to ensure it holds up relatively well.
  • These shares look moderately undervalued below $50.

A Hancock Whitney bank branch in New Orleans, Louisiana, USA.

JHVEPhoto/iStock Editorial via Getty Images

Times are starting to get a bit tougher for banks. Funding costs are rising, there is upward pressure on operating expenses, and loan growth appears to be moderating - all of which could squeeze pre-provision earnings. Bad debt provisioning, too, is on

Data by YCharts

Hancock Whitney Quarterly Net Interest Income & Margin

Data Source: Hancock Whitney 2022 Earnings Release

Hancock Whitney NPL Data

Source: Hancock Whitney 2022 Results Presentation

This article was written by

Mark Dockray profile picture
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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