Why Webster Financial (WBS) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's future growth potential through earnings and sales projections [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7] - The combination of Zacks Rank and Style Scores helps investors select stocks with the highest probability of success [9] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing returns [9][10] Company Spotlight: Webster Financial Corporation - Webster Financial Corporation, based in Stanford, CT, operates through Webster Bank and HSA Bank, offering a range of financial services [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - Webster Financial's Value Style Score is B, supported by a forward P/E ratio of 9.67, making it attractive to value investors [12] - Recent upward revisions in earnings estimates by nine analysts have increased the Zacks Consensus Estimate for fiscal 2025 by $0.15 to $5.86 per share, with an average earnings surprise of +1.6% [12]