10 High Growth Financial Stocks To Invest In

5. Western Alliance Bancorporation (NYSE:WAL)

5-Year Revenue Growth: 22.66%

Number of Hedge Fund Holders: 35

Western Alliance Bancorporation (NYSE:WAL) is a bank holding company that operates primarily through its banking subsidiary, Western Alliance Bank. It provides various financial services including loans, deposits, treasury management, and digital payments.

On January 29, Jared Shaw, an analyst at Barclays maintained a Buy rating on the stock, with a price target of $107. Moreover, Ariel Global Fund also announced initiating a position in the company in its Q3 2024 investor letter. The firm acknowledged that Western Alliance Bancorporation (NYSE:WAL) has faced credit concerns and other headwinds in recent years. However, it believes a restructured balance sheet and diversified portfolio can put the company back on track for long-term growth. During the fiscal fourth quarter of 2024, the company reported an EPS of $1.95 which indicates a significant increase year-over-year. Moreover, the bank also grew its net income by 8.6% on a subsequent basis to reach $216.9 million during the fourth quarter.

Western Alliance Bancorporation (NYSE:WAL) is optimistic about sustaining its earnings trajectory into 2025 through its diversified business strategy and strong credit platforms while maintaining a focus on asset quality amid changing interest rates. Here’s what Ariel Global said about the company:

“Finally, we initiated a position in a bank holding company, Western Alliance Bancorporation (NYSE:WAL). Shares have been impacted by multiple headwinds in recent years including a poorly timed expansion into mortgage services via the acquisition of AmeriHome in 2021, persistent credit concerns amidst the Fed’s rate hikes and then higher deposit costs following the March 2023 banking crisis. However, with a restructured balance sheet and diversified portfolio, we believe WAL is well-positioned for future growth in the current market environment.”