We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Customers Bancorp (CUBI) Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 4.49, which compares to its industry's average of 13.05. Over the past year, CUBI's Forward P/E has been as high as 7.84 and as low as 2.98, with a median of 4.55.
We should also highlight that CUBI has a P/B ratio of 0.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.91. CUBI's P/B has been as high as 0.88 and as low as 0.37, with a median of 0.50, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CUBI has a P/S ratio of 1.05. This compares to its industry's average P/S of 2.34.
Finally, investors will want to recognize that CUBI has a P/CF ratio of 4.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 11. CUBI's P/CF has been as high as 7.20 and as low as 2.69, with a median of 3.75, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Customers Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CUBI feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Customers Bancorp (CUBI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 4.49, which compares to its industry's average of 13.05. Over the past year, CUBI's Forward P/E has been as high as 7.84 and as low as 2.98, with a median of 4.55.
We should also highlight that CUBI has a P/B ratio of 0.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.91. CUBI's P/B has been as high as 0.88 and as low as 0.37, with a median of 0.50, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CUBI has a P/S ratio of 1.05. This compares to its industry's average P/S of 2.34.
Finally, investors will want to recognize that CUBI has a P/CF ratio of 4.53. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 11. CUBI's P/CF has been as high as 7.20 and as low as 2.69, with a median of 3.75, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Customers Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CUBI feels like a great value stock at the moment.