Regional banking institution Waterstone Financial continues to demonstrate impressive upward momentum in its stock performance. The equity closed Friday’s trading session at $15.30, marking its seventh positive close within just ten trading days. This consistent performance has resulted in a 4.1% gain over the past two weeks, signaling growing investor confidence and strengthening bullish sentiment.
Fundamental Performance Underpins Market Movement
The technical picture gains substantial support from Waterstone’s robust fundamental performance. The company’s earnings growth reached an impressive 77.8% last year, while profit margins expanded significantly from 10.1% to 17.4%. The mortgage banking segment showed particularly explosive growth, surging from $144,000 in the prior year quarter to a substantial $1.3 million profit.
With revenue standing at $37.04 million and earnings per share of $0.45, these fundamental metrics provide a solid foundation for the current market optimism. Despite the notable rally, Waterstone maintains a price-to-earnings ratio of 12, which remains well below the industry average of 17.2. This valuation gap raises important questions about when broader market recognition might materialize for this regional banking stock.
Should investors sell immediately? Or is it worth buying Waterstone?
Technical Indicators Reinforce Positive Outlook
Market activity shows heightened interest beyond just price appreciation. Trading volumes have surged dramatically, with 36,000 shares changing hands and total trading volume reaching $557,290. This increased liquidity provides additional confirmation of the established uptrend.
Key technical indicators present a compelling case:
* The long-term moving average currently indicates a buy signal
* Positive momentum is confirmed by the 3-month MACD indicator
* Resistance appears at $15.31, with support established at $15.17
While some short-term selling signals exist, the overall technical configuration strongly favors continued bullish sentiment. The combination of technical strength and fundamental undervaluation suggests potential for further positive developments in Waterstone’s market performance.
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