A Look at Hancock Whitney (HWC) Valuation Following Its Third-Quarter Earnings Beat and Growth Initiatives

Hancock Whitney (HWC) delivered third-quarter results that outpaced analyst estimates, with higher earnings and improved profitability metrics. The company also reaffirmed its growth plans, including new branch openings and ongoing share repurchases.

See our latest analysis for Hancock Whitney.

Hancock Whitney’s third-quarter beat on earnings, continued branch expansion, and ongoing share buybacks have helped fuel positive investor sentiment, even as some seasonal headwinds weighed on deposits. While the share price has dipped 12.4% over the past month, the stock’s 9.2% total shareholder return over the last year and 165% return over five years signal underlying long-term momentum and renewed market confidence in the company’s growth plan.

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With Hancock Whitney trading at a notable discount to analyst targets despite recent gains, the key question for investors is whether the current price presents a genuine buying opportunity or if the market has already factored in future growth.

Most Popular Narrative: 21.3% Undervalued

With Hancock Whitney’s fair value narrative pointing to $70.25, and the last closing price at $55.27, the numbers suggest meaningful upside potential if the narrative’s forecasts hold true. This sets the foundation for understanding whether bullish growth assumptions justify the current gap.

The acquisition of Sabal Trust Company is projected to close soon, with expectations to enhance noninterest income by 9% to 10% year-over-year, contributing to overall revenue growth. The company plans to continue hiring revenue producers, with a target of adding 20 to 30 new personnel, particularly in high growth markets like Texas and Florida. This is expected to drive loan growth and increase revenue.

Read the complete narrative.

What is the real engine behind that valuation? The bullish scenario hinges on a series of aggressive growth levers and a bold jump in future profitability. Think outsized earnings, sustained revenue surges, and profitability targets not seen in years, all reflected in a future price multiple that could stand out from competitors. Wondering how it all adds up? Follow the full story to see what is fueling these expectations.

Result: Fair Value of $70.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, economic uncertainty and potential bumps in loan growth could challenge these optimistic forecasts, making future earnings less predictable than they appear today.

Find out about the key risks to this Hancock Whitney narrative.

Build Your Own Hancock Whitney Narrative

If you want to see the numbers from another angle or trust your own deep-dive over forecasts, you can shape a narrative in minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Hancock Whitney.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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