Webster Financial (WBS) Outperforms S&P 500, but Analysts Flag Slowing Growth After Q1

Webster Financial (WBS) shares have risen 26.8% over the six months through May 13, 2026, outperforming the S&P 500 by 19.2 percentage points and reaching $72.68, but StockStory said it remains cautious on the bank after first-quarter earnings. The research firm cited slowing demand, with Webster’s annualized revenue growth at 4.6% over the past two years, below its five-year trend. It also noted Wall Street expects profitability to weaken over the next 12 months, with the bank’s efficiency ratio projected at 47.6%, up from 46.2% over the past year. A higher efficiency ratio indicates weaker cost control relative to revenue. Webster’s earnings per share grew at a 3% annual rate over the past two years, broadly in line with its revenue trend. StockStory said the stock’s valuation at 1.2 times forward price-to-book is fair but offers limited upside relative to downside risk.