Back to top

Analyst Blog

On Aug 31, Zacks Investment Research upgraded East West Bancorp, Inc. (EWBC - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

East West Bancorp has been witnessing rising earnings estimates on the back of strong second-quarter 2013 results. Moreover, this well-known personal and commercial banking services provider delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 2.1%. The long-term expected earnings growth rate for this stock is 9%.

East West Bancorp reported its second-quarter results on Jul 17 with earnings per share of 52 cents, beating the Zacks Consensus Estimate of 51 cents by 1.96% and the year-ago earnings of 47 cents by 10.6%. Notably, the second quarter marked the ninth consecutive quarter of earnings growth for East West Bancorp.

The company maintained a strong capital position with solid loans and deposit balances during the quarter. Moreover, return on average common equity was recorded at 12.59%, up 13 basis points year over year. Provision for loan losses substantially declined 50% year over year to $8.3 million.

Moreover, expenses decreased 7.1% to $94.4 million, as compared with the prior-year period. Lower compensation and employee benefits and reduced loan related expenses primarily drove the decline.

Following second-quarter 2013 results, the Zacks Consensus Estimate for 2013 increased 2.9% to $2.10 per share on the back of all 9 upward revisions, over the last 60 days. For 2014, the Zacks Consensus Estimate advanced 5.7% to $2.23 per share with 9 of the 10 estimates moving north over the same time period.

Other Stocks to Consider

Besides East West Bancorp, other banks in the West with a Zacks Rank #1 include Glacier Bancorp Inc. (GBCI - Snapshot Report), Umpqua Holdings Corporation (UMPQ - Snapshot Report) and Preferred Bank (PFBC - Snapshot Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%