10 Most Undervalued Quality Stocks To Buy According To Analysts

4. WSFS Financial Corp. (NASDAQ:WSFS)

Average Upside Potential: 19.99%

Forward Price-to-Earnings Ratio: 11.05

Number of Hedge Fund Holders: 10

WSFS Financial Corp. (NASDAQ:WSFS) is a savings and loan holding company. It operates through its subsidiary, WSFS Bank, which provides many financial products and services like personal and commercial banking, wealth management, and insurance. It is known for its strong community focus and commitment to providing personalized service.

Core earnings per share were $1.08, with core return on assets at 1.25% and core return on tangible common equity at 18.83% in Q2 2024. Revenue grew 6.97% year-over-year in this quarter. Core fee revenue grew 28% year-over-year, driven by strong performance across all major fee businesses, particularly in Wealth Management and Cash Connect. Wealth Management fee revenue grew 16%. Cash Connect added ~8,000 ATMs and increased ROA to 1.72%. Capital markets and mortgage businesses increased fee revenue by 13% and 35%, respectively.

WSFS Financial Corp. (NASDAQ:WSFS) is now focused on strategic investments, including expanding Cash Connect capabilities and growing Wealth Management services. It is committed to maintaining stable asset quality and returning a significant portion of its net income to shareholders through dividends and stock buybacks.

The company’s strong financial performance, coupled with its commitment to shareholder returns and strategic focus, positions it for continued success. Its ability to maintain a healthy balance sheet and generate consistent earnings, even in a challenging economic environment, demonstrates its resilience and long-term growth potential, making it a great investment opportunity.

Here is what Clearbridge Investments Small Cap Strategy has to say about WSFS Financial Corporation (NASDAQ:WSFS) in its Q1 2022 investor letter:

“We also initiated a new position in WSFS Financial (NASDAQ:WSFS), in the financials sector. A savings and loan company, WSFS Financial provides various banking services including savings accounts, loans and consumer credit products. The company has made several acquisitions in recent years that have brought it into higher growth markets such as Washington DC and provided good cost savings. We believe it is well-positioned to maintain good loan growth, despite interest rate headwinds.”