Webster Financial Stock Buy Hold or Sell Recommendation

WBS Stock  USD 50.77  0.04  0.08%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Webster Financial is 'Hold'. Macroaxis provides Webster Financial buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WBS positions. The advice algorithm takes into account all of Webster Financial's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Webster Financial's buy or sell advice are summarized below:
Real Value
49.77
Hype Value
50.75
Market Value
50.77
Naive Value
50.32
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Webster Financial given historical horizon and risk tolerance towards Webster Financial. When Macroaxis issues a 'buy' or 'sell' recommendation for Webster Financial, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Webster Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Webster Stock please use our How to Invest in Webster Financial guide.
In addition, we conduct extensive research on individual companies such as Webster and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Webster Financial. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Execute Webster Financial Buy or Sell Advice

The Webster recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Webster Financial. Macroaxis does not own or have any residual interests in Webster Financial or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Webster Financial's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Webster FinancialBuy Webster Financial
Hold

Market Performance

WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Not AvailableDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Webster Financial has a Risk Adjusted Performance of 0.0169, Jensen Alpha of (0.14), Total Risk Alpha of (0.39), Sortino Ratio of (0.06) and Treynor Ratio of 0.0177
Our trade advice tool can be used to complement Webster Financial recommendation provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon. To make sure Webster Financial is not overpriced, please check out all Webster Financial fundamentals, including its total debt, market capitalization, and the relationship between the gross profit and earnings per share . Given that Webster Financial has a price to earning of 17.34 X, we strongly advise you to confirm Webster Financial market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Webster Financial Trading Alerts and Improvement Suggestions

Over 88.0% of the company outstanding shares are owned by institutional investors
On 16th of February 2024 Webster Financial paid $ 0.4 per share dividend to its current shareholders
Latest headline from finance.yahoo.com: We Ran A Stock Scan For Earnings Growth And Webster Financial Passed With Ease

Webster Financial Returns Distribution Density

The distribution of Webster Financial's historical returns is an attempt to chart the uncertainty of Webster Financial's future price movements. The chart of the probability distribution of Webster Financial daily returns describes the distribution of returns around its average expected value. We use Webster Financial price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Webster Financial returns is essential to provide solid investment advice for Webster Financial.
Mean Return
0.03
Value At Risk
-2.89
Potential Upside
2.62
Standard Deviation
1.83
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Webster Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Webster Financial Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Webster Financial or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Webster Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Webster stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.14
β
Beta against NYSE Composite1.28
σ
Overall volatility
1.87
Ir
Information ratio -0.06

Webster Financial Volatility Alert

Webster Financial has relatively low volatility with skewness of -0.38 and kurtosis of 0.66. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Webster Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Webster Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Webster Financial Fundamentals Vs Peers

Comparing Webster Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Webster Financial's direct or indirect competition across all of the common fundamentals between Webster Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Webster Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Webster Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Webster Financial by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Webster Financial to competition
FundamentalsWebster FinancialPeer Average
Return On Equity0.1-0.31
Return On Asset0.0119-0.14
Profit Margin0.35 %(1.27) %
Operating Margin0.26 %(5.51) %
Current Valuation11.62 B16.62 B
Shares Outstanding171.56 M571.82 M
Shares Owned By Insiders0.96 %10.09 %
Shares Owned By Institutions88.10 %39.21 %
Number Of Shares Shorted3.55 M4.71 M
Price To Earning17.34 X28.72 X
Price To Book1.01 X9.51 X
Price To Sales3.49 X11.42 X
Revenue3.95 B9.43 B
Gross Profit2.19 B27.38 B
EBITDA36.21 M3.9 B
Net Income859.92 M570.98 M
Cash And Equivalents613.12 M2.7 B
Cash Per Share3.52 X5.01 X
Total Debt4.12 B5.32 B
Debt To Equity9.21 %48.70 %
Book Value Per Share48.87 X1.93 K
Cash Flow From Operations978.95 M971.22 M
Short Ratio2.76 X4.00 X
Earnings Per Share4.91 X3.12 X
Price To Earnings To Growth1.93 X4.89 X
Target Price59.53
Number Of Employees4.13 K18.84 K
Beta1.31-0.15
Market Capitalization8.72 B19.03 B
Total Asset75.16 B29.47 B
Retained Earnings3.28 B9.33 B
Z Score1.388.72
Annual Yield0.03 %
Note: Disposition of 13881 shares by Christopher Motl of Webster Financial at 49.0 subject to Rule 16b-3 [view details]

Webster Financial Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Webster . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Webster Financial Buy or Sell Advice

When is the right time to buy or sell Webster Financial? Buying financial instruments such as Webster Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Webster Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Small Growth Funds Thematic Idea Now

Small Growth Funds
Small Growth Funds Theme
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Growth Funds Theme or any other thematic opportunities.
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When determining whether Webster Financial is a strong investment it is important to analyze Webster Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Webster Financial's future performance. For an informed investment choice regarding Webster Stock, refer to the following important reports:
Check out Webster Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Webster Stock please use our How to Invest in Webster Financial guide.
Note that the Webster Financial information on this page should be used as a complementary analysis to other Webster Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Webster Financial's price analysis, check to measure Webster Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Webster Financial is operating at the current time. Most of Webster Financial's value examination focuses on studying past and present price action to predict the probability of Webster Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Webster Financial's price. Additionally, you may evaluate how the addition of Webster Financial to your portfolios can decrease your overall portfolio volatility.
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Is Webster Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Webster Financial. If investors know Webster will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Webster Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Webster Financial is measured differently than its book value, which is the value of Webster that is recorded on the company's balance sheet. Investors also form their own opinion of Webster Financial's value that differs from its market value or its book value, called intrinsic value, which is Webster Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Webster Financial's market value can be influenced by many factors that don't directly affect Webster Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Webster Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Webster Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Webster Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.