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Are Investors Undervaluing Customers Bancorp (CUBI) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.67. This compares to its industry's average Forward P/E of 9.22. Over the past 52 weeks, CUBI's Forward P/E has been as high as 11.65 and as low as 4.61, with a median of 6.54.
Investors should also recognize that CUBI has a P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.65. Within the past 52 weeks, CUBI's P/B has been as high as 1.97 and as low as 0.87, with a median of 1.30.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 1.29. This compares to its industry's average P/S of 2.9.
Finally, we should also recognize that CUBI has a P/CF ratio of 8.74. 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 10.34. CUBI's P/CF has been as high as 22.20 and as low as 5.06, with a median of 11.33, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Customers Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, CUBI sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Customers Bancorp (CUBI) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.67. This compares to its industry's average Forward P/E of 9.22. Over the past 52 weeks, CUBI's Forward P/E has been as high as 11.65 and as low as 4.61, with a median of 6.54.
Investors should also recognize that CUBI has a P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.65. Within the past 52 weeks, CUBI's P/B has been as high as 1.97 and as low as 0.87, with a median of 1.30.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 1.29. This compares to its industry's average P/S of 2.9.
Finally, we should also recognize that CUBI has a P/CF ratio of 8.74. 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 10.34. CUBI's P/CF has been as high as 22.20 and as low as 5.06, with a median of 11.33, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Customers Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, CUBI sticks out at as one of the market's strongest value stocks.