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Is Customers Bancorp (CUBI) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.44, which compares to its industry's average of 10.98. Over the last 12 months, CUBI's Forward P/E has been as high as 9.98 and as low as 6.09, with a median of 8.00.
Another valuation metric that we should highlight is CUBI's P/B ratio of 1.21. 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 stock's P/B looks attractive against its industry's average P/B of 1.96. CUBI's P/B has been as high as 1.28 and as low as 0.78, with a median of 0.95, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CUBI has a P/S ratio of 1.57. This compares to its industry's average P/S of 2.2.
Finally, investors should note that CUBI has a P/CF ratio of 12.99. 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. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 16.99. Over the past year, CUBI's P/CF has been as high as 13.81 and as low as 7.09, with a median of 9.46.
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, 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Customers Bancorp (CUBI - Free Report) . CUBI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.44, which compares to its industry's average of 10.98. Over the last 12 months, CUBI's Forward P/E has been as high as 9.98 and as low as 6.09, with a median of 8.00.
Another valuation metric that we should highlight is CUBI's P/B ratio of 1.21. 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 stock's P/B looks attractive against its industry's average P/B of 1.96. CUBI's P/B has been as high as 1.28 and as low as 0.78, with a median of 0.95, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CUBI has a P/S ratio of 1.57. This compares to its industry's average P/S of 2.2.
Finally, investors should note that CUBI has a P/CF ratio of 12.99. 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. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 16.99. Over the past year, CUBI's P/CF has been as high as 13.81 and as low as 7.09, with a median of 9.46.
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.