In the latest trading session, Western Alliance (WAL) closed at $40.77, marking a +0.59% move from the previous day. This move lagged the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 5.66%.
Prior to today's trading, shares of the bank holding company had gained 47.49% over the past month. This has outpaced the Finance sector's gain of 3.31% and the S&P 500's gain of 3.44% in that time.
Investors will be hoping for strength from Western Alliance as it approaches its next earnings release. In that report, analysts expect Western Alliance to post earnings of $2.02 per share. This would mark a year-over-year decline of 15.48%. Our most recent consensus estimate is calling for quarterly revenue of $660.8 million, up 5.19% from the year-ago period.
WAL's full-year Zacks Consensus Estimates are calling for earnings of $8.23 per share and revenue of $2.62 billion. These results would represent year-over-year changes of -15.15% and +2.22%, respectively.
Investors should also note any recent changes to analyst estimates for Western Alliance. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. Western Alliance is currently a Zacks Rank #3 (Hold).
Digging into valuation, Western Alliance currently has a Forward P/E ratio of 4.93. This represents a discount compared to its industry's average Forward P/E of 7.27.
We can also see that WAL currently has a PEG ratio of 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - West stocks are, on average, holding a PEG ratio of 0.62 based on yesterday's closing prices.
The Banks - West industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WAL in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report