Webster Bank
WBS
$77.57
-0.51%
Webster Financial Corporation, operating as Webster Bank, is a full-service regional bank providing commercial and consumer banking, mortgages, and investment advisory services across Connecticut, New York, Rhode Island, Massachusetts, and Pennsylvania. As a mid-sized regional player, it differentiates itself through its HSA Bank segment, a leading provider of health savings accounts, alongside its core commercial banking franchise. The current investor narrative centers on the bank's strong profitability and capital position, with a focus on its ability to navigate a shifting interest rate environment and manage loan growth while returning capital to shareholders. Recent analyst actions have been mixed, with some downgrades reflecting concerns about net interest margin pressure, but the stock's robust 1-year performance indicates confidence in its strategic execution.…
WBS
Webster Bank
$77.57
WBS 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Webster Bank's 12-month outlook, with a consensus price target around $76.18 and implied upside of -1.8% versus the current price.
Average Target
$76.18
0 analysts
Implied Upside
-1.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$72 - $81
Analyst target range
Analyst coverage includes 11 analysts, with a consensus recommendation of 'hold' and a mean recommendation score of 2.75 (where 1 is strong buy and 5 is sell). The average target price is $76.18, implying a downside of -3.6% from the current price of $79.00. The distribution includes 4 buys, 4 holds, and 3 sells, indicating a cautious sentiment. The target range spans from a low of $72.00 to a high of $81.00, with the high target suggesting potential upside of 2.5% and the low target implying a downside of -8.9%. Recent institutional actions show a mix of downgrades (e.g., Wells Fargo to Underweight, Citigroup to Neutral) and reaffirmations (e.g., Keefe, Bruyette & Woods Outperform), reflecting uncertainty about near-term catalysts. The wide spread between low and high targets highlights the divergent views on the bank's ability to sustain growth amid a challenging rate environment.
WBS Technical Analysis
WBS is in a sustained uptrend, with the stock price appreciating 35.2% over the past year, significantly outperforming the S&P 500's 20.4% gain. The current price of $79.00 sits just 0.9% below its 52-week high of $79.74 and 49.9% above its 52-week low of $52.69, placing it near the top of its 52-week range. This positioning suggests strong momentum and investor optimism, though it also raises the risk of short-term overextension. The stock's beta of 1.005 indicates volatility roughly in line with the broader market, providing a stable risk profile for investors.
Beta
1.00
1.00x market volatility
Max Drawdown
-14.0%
Largest decline past year
52-Week Range
$53-$80
Price range past year
Annual Return
+33.9%
Cumulative gain past year
| Period | WBS Return | S&P 500 |
|---|---|---|
| 1m | +2.9% | +2.5% |
| 3m | +6.9% | +2.7% |
| 6m | +6.1% | +11.1% |
| 1y | +33.9% | +20.5% |
| ytd | +21.5% | +12.3% |
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WBS Fundamental Analysis
Revenue for the most recent quarter (Q1 2026) was $994.3 million, a decline of 6.7% year-over-year, breaking a streak of sequential growth seen in prior quarters. However, net income remained robust at $246.2 million, with EPS of $1.50, reflecting strong profitability despite the revenue dip. The company's gross margin stood at 63.8%, and its net margin was 24.8%, indicating efficient cost management. Over the past five quarters, revenue has fluctuated between $994 million and $1.13 billion, with the latest quarter showing a contraction that may signal headwinds from lower interest income or loan demand. The commercial banking segment, which generates maximum revenue, is likely the primary driver, while HSA Bank provides diversification.
Quarterly Revenue
$994279000.0B
2026-03
Revenue YoY Growth
-6.7%
YoY Comparison
Gross Margin
63.8%
Latest Quarter
Free Cash Flow
$1.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is WBS Overvalued?
Given the positive net income, the PE ratio is the primary valuation metric. The trailing PE is 10.63x, while the forward PE is 11.02x, indicating that the market expects earnings to remain relatively stable, with a slight premium for future growth. This low single-digit PE is typical for regional banks and suggests the stock is not overvalued. Compared to the industry average PE of 15x (based on available data), WBS trades at a 29% discount, which may reflect concerns about asset quality or growth prospects. Historically, the stock's PE has ranged from 7.1x to 13.7x over the past two years, with the current level near the middle, suggesting fair valuation relative to its own history. The PEG ratio of 0.30 implies that the stock is undervalued relative to its earnings growth potential, making it an attractive value proposition.
PE
10.6x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 7x~14x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
9.0x
Enterprise Value Multiple