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.
East West Bancorp Rolls Out Share Buyback Plan Worth $500M
Read MoreHide Full Article
East West Bancorp, Inc. (EWBC - Free Report) continues to reward shareholders through dividend hikes or share repurchases. The company recently announced a share-buyback plan, with authorization to repurchase common shares worth $500 million.
Notably, the latest authorization includes $100 million worth of shares that are currently outstanding.
East West Bancorp has also been paying quarterly dividends along with some hikes. In April 2019, the company hiked its dividend by 20%, which followed a 15% increase announced in July 2018. Prior to this, it raised its dividend by 11.1% in January 2015.
Shares of East West Bancorp have lost 10.2% in the past six months against 2.3% growth recorded by the industry.
With strong liquidity and capital position, we believe East West Bancorp will continue to reward its shareholders in the days to come. Let’s dig deeper into its financials and fundamental strength.
Stock is Undervalued: With respect to its price-to-earnings (P/E) and price-to-cash flow (P/CF) ratios, East West Bancorp looks undervalued. The company’s P/E (F1) ratio of 8.60 comes in below the industry average of 11.33. Also, its P/CF ratio is 7.10 compared with the industry average of 9.53.
Revenue Strength: East West Bancorp remains focused on its organic growth strategy. The company’s net interest income (NII), which is the primary source of its revenues, witnessed a CAGR of 11.5% over the last five years (2015-2019). Moreover, the company’s projected sales growth rates of 0.1% for 2020 and 5.3% for 2021 indicate constant upward momentum in revenues.
Earnings Growth: The company witnessed earnings growth of 17.1% in the last three to five years, higher than the industry average of 15.6%. The uptrend is expected to continue in the near term as evidenced from its projected EPS growth rates of 2% and 5.6% for 2020 and 2021, respectively.
Similar Moves
During the current quarter, among other finance stocks, Popular, Inc. (BPOP - Free Report) , Stifel Financial Corp. (SF - Free Report) and Jefferies Financial Group Inc. (JEF - Free Report) also announced share-repurchase authorizations.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
East West Bancorp Rolls Out Share Buyback Plan Worth $500M
East West Bancorp, Inc. (EWBC - Free Report) continues to reward shareholders through dividend hikes or share repurchases. The company recently announced a share-buyback plan, with authorization to repurchase common shares worth $500 million.
Notably, the latest authorization includes $100 million worth of shares that are currently outstanding.
East West Bancorp has also been paying quarterly dividends along with some hikes. In April 2019, the company hiked its dividend by 20%, which followed a 15% increase announced in July 2018. Prior to this, it raised its dividend by 11.1% in January 2015.
Shares of East West Bancorp have lost 10.2% in the past six months against 2.3% growth recorded by the industry.
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With strong liquidity and capital position, we believe East West Bancorp will continue to reward its shareholders in the days to come. Let’s dig deeper into its financials and fundamental strength.
Stock is Undervalued: With respect to its price-to-earnings (P/E) and price-to-cash flow (P/CF) ratios, East West Bancorp looks undervalued. The company’s P/E (F1) ratio of 8.60 comes in below the industry average of 11.33. Also, its P/CF ratio is 7.10 compared with the industry average of 9.53.
Revenue Strength: East West Bancorp remains focused on its organic growth strategy. The company’s net interest income (NII), which is the primary source of its revenues, witnessed a CAGR of 11.5% over the last five years (2015-2019). Moreover, the company’s projected sales growth rates of 0.1% for 2020 and 5.3% for 2021 indicate constant upward momentum in revenues.
Earnings Growth: The company witnessed earnings growth of 17.1% in the last three to five years, higher than the industry average of 15.6%. The uptrend is expected to continue in the near term as evidenced from its projected EPS growth rates of 2% and 5.6% for 2020 and 2021, respectively.
Similar Moves
During the current quarter, among other finance stocks, Popular, Inc. (BPOP - Free Report) , Stifel Financial Corp. (SF - Free Report) and Jefferies Financial Group Inc. (JEF - Free Report) also announced share-repurchase authorizations.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>