Market Finally Hears Washington Mutual's Message
Shares bounce on strong earnings report; stock still attractive.
Undervalued Washington Mutual (WM) is getting some well-deserved respect from investors Wednesday after the company's first-quarter earnings report showed that rising interest rates haven't been as hard on profits as many feared. The stock was up as much as 7% in midday trading, erasing some of the shares' bargain qualities. But given the company's growth prospects, it's not too late to jump on the Washington Mutual bandwagon.
Earnings per share for the quarter were up 9% from the year-earlier period to 83 cents, beating Wall Street's consensus estimate by 2 cents. Net income increased 3.2% to $459 million.
Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.