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Is Customers Bancorp (CUBI) a Great Value Stock 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.30. This compares to its industry's average Forward P/E of 13.01. Over the past year, CUBI's Forward P/E has been as high as 11.31 and as low as 3.27, with a median of 7.70.
We also note that CUBI holds a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CUBI's PEG compares to its industry's average PEG of 1.43. Within the past year, CUBI's PEG has been as high as 0.98 and as low as 0.71, with a median of 0.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.6. This compares to its industry's average P/S of 1.76.
Finally, investors should note that CUBI has a P/CF ratio of 3.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 13.42. Within the past 12 months, CUBI's P/CF has been as high as 10.20 and as low as 2.72, with a median of 8.06.
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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Is Customers Bancorp (CUBI) a Great Value Stock 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.30. This compares to its industry's average Forward P/E of 13.01. Over the past year, CUBI's Forward P/E has been as high as 11.31 and as low as 3.27, with a median of 7.70.
We also note that CUBI holds a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CUBI's PEG compares to its industry's average PEG of 1.43. Within the past year, CUBI's PEG has been as high as 0.98 and as low as 0.71, with a median of 0.81.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.6. This compares to its industry's average P/S of 1.76.
Finally, investors should note that CUBI has a P/CF ratio of 3.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CUBI's current P/CF looks attractive when compared to its industry's average P/CF of 13.42. Within the past 12 months, CUBI's P/CF has been as high as 10.20 and as low as 2.72, with a median of 8.06.
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.