Webull (NasdaqCM:BULL) just made headlines with its addition to the S&P Global BMI Index, a move that often puts companies on the radar of a much wider investor base. For anyone deciding what to do with the stock now, it is a moment that could matter since index inclusion sometimes changes the dynamics for both volume and visibility. While the news alone does not guarantee immediate impact, it is the kind of event that brings fresh attention and could lead to shifts in demand from institutional funds tracking the index.

This development comes after a year where Webull’s share price has gained 25%, including a strong 26% jump over the past 3 months, despite a softer showing in the last month. Investors have seen momentum ebb and flow over the past year, but with annual revenue growing by 25% and net income up 33%, these gains are grounded in underlying business improvement rather than mere sentiment. Other recent events have been less high profile. This makes the index inclusion the main talking point in the current cycle.

With Webull now benefiting from greater market visibility and improved fundamentals, some investors may be considering whether the market has already priced in the next chapter of growth or if the current conditions present further opportunity.

Most Popular Narrative: 21.7% Undervalued

According to the prevailing narrative, Webull is seen as significantly undervalued relative to its projected future earnings, revenue growth, and profit margins. The current price leaves considerable upside if forecasts become reality.

*Rapid adoption and reintroduction of crypto trading, along with the platform's ability to quickly add new digital asset classes and prediction markets, positions Webull to capture growing demand for broad, mobile-accessible investment options, fueling revenue growth and market share.*

Curious what is fueling this aggressive upside view? There is a bold financial story here, involving rapid expansion, recurring revenue, and profit metrics on a scale the market rarely associates with new entrants. The full narrative unpacks a set of ambitious forecasts that most investors have not seen yet.

Result: Fair Value of $18.00 (UNDERVALUED)

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

However, shifts in retail trading trends or unexpected regulatory hurdles could quickly challenge Webull’s growth story and alter the outlook going forward.

Find out about the key risks to this Webull narrative.

Another View: Valuation Based on Current Earnings

While the last estimate suggested strong upside, a look at the company's price against its earnings, compared to the broader industry, presents a pricier picture. Which of these signals should matter most to investors right now?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Webull to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Webull Narrative

If you have a different take or prefer relying on your own research, there’s nothing stopping you from crafting your version of the story in just a few minutes. Do it your way.

A great starting point for your Webull research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Investment Ideas?

Don’t let today’s opportunity be your only one. The next big winner might be just a click away if you know where to look first.

• Capture income potential by targeting steady earners through our handpicked list of dividend stocks with yields > 3% that consistently yield above 3%.
• Unleash the possibilities of tomorrow’s tech boom by scouting out groundbreaking companies among today’s AI penny stocks.
• Capitalize on hidden bargains in the market by reviewing our unique collection of undervalued stocks based on cash flows built on undervalued cash flow opportunities.

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.