Stock Price & Analysis

Based on the current technical indicators and analyst sentiment, WBS stock presents a buying opportunity as it is oversold with an RSI of 19.14 and strong buy ratings from analysts. However, be cautious due to negative insider sentiment.

The predicted price for WBS stock in 2025 is $70. Analysts have raised their targets, with an average of $71.40, driven by strong financial results and improved net interest income. The stock is currently undervalued, trading at $47.41, below key support levels, suggesting upside potential.

The S1 support level for WBS Stock is $48.41 ,The R1 resistant level for WBS Stock is $55.81.

As of the end of day on 2025-03-13, the price of WBS Stock was $48.88.

The target price for WBS Stock according to analyst rating is 71.40, with the highest price target at 80.00 and the lowest at 65.00. Analysts have a Strong Buy rating on WBS Stock overall.

The market cap of WBS is $8.5B.

Analysis and Insights

Valuation Metrics

Webster Financial Corp (WBS) currently has a P/E ratio of 12.5, which is below the industry average of 15-20, suggesting the stock may be undervalued. The EV/EBITDA ratio of 10.94 and P/S ratio of 3.11 indicate reasonable valuation relative to its peers. The P/B ratio of 1.07 suggests the stock is trading near its book value, further supporting the case that it is not overvalued.

Financial Performance

WBS reported strong Q4 2024 results, with total revenue of $653.588 million and net income of $173.603 million. The company maintains a solid ROE of 8.72% and a net margin of 27.20%, demonstrating strong profitability and efficient operations.

Analyst Sentiment

Analysts have a favorable outlook on WBS, with a consensus Strong Buy rating and an average price target of $71.40, implying significant upside potential. Recent upgrades and positive commentary from firms like Wells Fargo and RBC Capital highlight confidence in the company's financial health and growth prospects.

Technical Analysis

The stock is currently trading at $47.41, near its Fibonacci support level of 46.5500. The RSI of 19.14 indicates oversold conditions, suggesting a potential rebound. While the MACD is bearish, the stock's proximity to key support levels may present a buying opportunity.

Conclusion

Based on its reasonable valuation, strong financial performance, and positive analyst sentiment, WBS does not appear to be overvalued. The stock's current price and technical indicators suggest it may be undervalued, offering a potential buying opportunity for investors.

Webster Financial Corporation is a holding company for Webster Bank, National Association and its HSA Bank division. The Webster Bank, along with its HSA Bank Division, is a commercial bank in the Northeast that delivers a range of digital and traditional financial solutions. Its segments include Commercial Banking, HSA Bank, and Consumer Banking. Commercial Banking serves businesses through its commercial real estate and equipment finance, middle market, business banking, asset-based lending and commercial services, public sector finance, mortgage warehouse, sponsor and specialty finance, verticals and support, private banking, and treasury management business units. HSA Bank segment offers a consumer-directed healthcare solution that includes health reimbursement arrangements, flexible spending accounts, and commuter benefits. The Consumer Banking segment operates a distribution network, primarily throughout southern New England and the New York Metro and Suburban markets.

Price Prediction for WBS Stock by 2030

The predicted price range for Webster Financial Corp (WBS) stock by 2030 is $90 to $110. This estimate is based on the company's strong position in the regional banking sector, growth in fee-based services, and potential long-term expansion. Analysts' current price targets and the company's strategic focus on efficiency and cost-cutting support this bullish outlook.

WBS has a total of 4131 employees.