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In my last article on Wintrust Financial Corporation (WTFC), I highlighted my concerns about a slowdown in demand for credit and an overvaluation of this bank. A few months later, WTFC has fallen 17%, but I still
Wintrust Financial Corporation: Clear Improvements, But The Opportunity To Buy Has Faded
Summary
- WTFC has shown resilience with growing deposits outpacing loans, but the current share price is too high to recommend a buy.
- Despite macroeconomic uncertainties like tariffs and inflation, WTFC's loan quality remains strong, with non-performing loans at a low 0.35%.
- The bank's dividend sustainability and growth is exceptional, but the dividend yield is quite low for a passive income investor.
- I would consider it a buy, if the TBV per share were around 1.20x.
Hi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 26 years old.In 2023 I graduated in Business Administration and I completed CFA level 1 in 2024. I am currently a Popular Investor on the investing platform eToro, you can see there my public portfolio. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. That was the spark that introduced me to a new world, but over time I realized that it was not my path: too many charts, lines, and not very concrete concepts for a pragmatic person like me. I needed something different and that I found in fundamental analysis. It is a totally different approach and one that evaluates the actual results achieved by a company rather than the candlesticks made by its price per share. That was the turning point for me and I have not stopped learning ever since. I mainly invest in stocks and ETFs; I prefer US companies but I often analyze European or Chinese companies as well. Being young, my investments typically have a very long-term view; I often take a contrarian view.Seeking Alpha is a way for me to express my opinion and meet new people. My articles are intended as pure entertainment and I hope you will find them interesting.
Analyst’s 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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