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Are Investors Undervaluing Customers Bancorp (CUBI) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.45, while its industry has an average P/E of 12.82. CUBI's Forward P/E has been as high as 7.10 and as low as 3.57, with a median of 4.68, all within the past year.
We should also highlight that CUBI has a P/B ratio of 1.21. The P/B is a method of comparing a stock's market value to 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 1.89. Over the past year, CUBI's P/B has been as high as 1.21 and as low as 0.41, with a median of 0.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CUBI has a P/S ratio of 1.75. This compares to its industry's average P/S of 3.08.
Finally, our model also underscores that CUBI has a P/CF ratio of 6.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.15. Within the past 12 months, CUBI's P/CF has been as high as 6.26 and as low as 2.69, with a median of 4.13.
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.
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Are Investors Undervaluing Customers Bancorp (CUBI) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.45, while its industry has an average P/E of 12.82. CUBI's Forward P/E has been as high as 7.10 and as low as 3.57, with a median of 4.68, all within the past year.
We should also highlight that CUBI has a P/B ratio of 1.21. The P/B is a method of comparing a stock's market value to 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 1.89. Over the past year, CUBI's P/B has been as high as 1.21 and as low as 0.41, with a median of 0.64.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CUBI has a P/S ratio of 1.75. This compares to its industry's average P/S of 3.08.
Finally, our model also underscores that CUBI has a P/CF ratio of 6.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.15. Within the past 12 months, CUBI's P/CF has been as high as 6.26 and as low as 2.69, with a median of 4.13.
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.