10 Best GARP Stocks to Buy Now

8. Western Alliance Bancorp. (NYSE:WAL)

Fwd. P/E: 9; P/B: 1.33

Expected EPS Growth Next FY: 27%

Number of Hedge Fund Holders: 32

Upside Potential: 36%

Western Alliance Bancorp. (NYSE:WAL) is a financial holding company offering a broad range of banking services. Through its wholly-owned subsidiary, Western Alliance Bank, the company provides customized lending solutions, deposit services, and treasury management, including digital payment and funds transfer capabilities. Additionally, it delivers specialized financial services to business clients and operates non-bank subsidiaries that offer captive insurance, corporate trust services, and leveraged loan administration solutions.

On January 27, Western Alliance Bancorp. (NYSE:WAL) reported a Q4 2024 net income of $217 million, reflecting an 8.6% increase from the previous quarter, while full-year net income for 2024 reached $788 million, marking a 9.0% year-over-year growth. Pre-provision net revenue (PPNR) for the quarter climbed 12% sequentially to exceed $319 million, and tangible common equity remained strong at 14.6%. Despite a seasonal $1.7 billion decline in deposits, asset quality remained solid throughout the year, with a non-performing assets ratio of 0.65% and net charge-offs at 0.18% of average loans. Overall, the company’s financial performance in both Q4 and FY 2024 showcased robust earnings growth and resilient asset quality.

In a report on February 3, a Piper Sandler analyst reiterated an Overweight rating on Western Alliance Bancorp. (NYSE:WAL) and raised the price target from $115 to $116. The analyst expects profitability to strengthen, driven by ongoing PPNR growth, lower ECR deposit costs benefiting from rate-related relief, and a potential increase in mortgage banking revenue, which he believes is not accounted for in the company’s FY25 guidance.