10 Best Mid Cap Value Stocks To Invest In

8. Western Alliance Bancorporation (NYSE:WAL)

Number of Hedge Fund Holders: 32

Market Capitalization as of October 28, 2024: $9.16 Billion

Forward P/E as of October 28, 2024: 11.5

Western Alliance Bancorporation (NYSE:WAL) ranks eighth on our list of the best mid cap value stocks to invest in. The company provides commercial and business banking solutions to people across the United States.

Western Alliance Bancorporation (NYSE:WAL) is one of the best-performing companies in the United States and has more than $80 billion in assets. Its subsidiary, Western Alliance Bank, offers a wide variety of personalized commercial banking solutions and consumer products. As of September 30, the company had total deposits worth $68 billion, up from $54.3 billion on September 30, 2023, representing an increase of $13.8 billion.

During the third quarter of 2024, Western Alliance Bancorporation (NYSE:WAL) generated $199.8 million in net income, up 7.8%. Net revenue reached $823.1 million, up by nearly 15% from the same period in 2023. Additionally, net interest income totaled $696.9 million in Q3 2024, up by 6.1% sequentially and 18.7% year-over-year. WAL celebrated sustainable loan and deposit momentum along with growth in earnings during Q3 2024.

Overall, Western Alliance Bancorporation (NYSE:WAL) was held by 32 hedge funds at the close of Q2 2024, according to the Insider Monkey database. The company has a solid business model and sustainable income source, positioning it as a valuable and profitable stock.

Miller Value Partners Miller Value Deep Value Select Strategy stated the following regarding Western Alliance Bancorporation (NYSE:WAL) in its fourth quarter 2023 investor letter:

“During the quarter, our largest positive contributor was Western Alliance Bancorporation (NYSE:WAL), whose market price was up more than 40%. Western is a leading national commercial bank with a capital-light business model. The company appears to me to be positioned for long-term growth at the high end of their peer group. WAL has industry-leading underwriting (as evidenced by their low loss rate) and return on assets, which, in my view, support their 18-20% target return on common tangible equity target.Consensus expectations remains in the 15% range potentially providing a nice ongoing variant. Western’s mortgage business is also a “hidden asset” not being sufficiently recognized in the company’s current share price in my opinion. At more than 10% of their company revenue and near trough profitability, any future recovery in the mortgage market from lower interest rates could provide greater future earnings power. WAL’s shares remain attractively priced with a price-to-estimated earnings ratio (FY2) below 7x, a 40% discount to its historical long-term average and a greater than 30% discount to their banking peer group.”