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Is Customers Bancorp (CUBI) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.79 right now. For comparison, its industry sports an average P/E of 12.58. Over the last 12 months, CUBI's Forward P/E has been as high as 7.31 and as low as 2.98, with a median of 4.55.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 1.3. This compares to its industry's average P/S of 2.67.
Finally, investors will want to recognize that CUBI has a P/CF ratio of 5.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 11. Over the past 52 weeks, CUBI's P/CF has been as high as 6.81 and as low as 2.69, with a median of 3.73.
These are just a handful of the figures considered in Customers Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CUBI is an impressive value stock right now.
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Is Customers Bancorp (CUBI) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.79 right now. For comparison, its industry sports an average P/E of 12.58. Over the last 12 months, CUBI's Forward P/E has been as high as 7.31 and as low as 2.98, with a median of 4.55.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 1.3. This compares to its industry's average P/S of 2.67.
Finally, investors will want to recognize that CUBI has a P/CF ratio of 5.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 11. Over the past 52 weeks, CUBI's P/CF has been as high as 6.81 and as low as 2.69, with a median of 3.73.
These are just a handful of the figures considered in Customers Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CUBI is an impressive value stock right now.