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East West Bancorp (EWBC) is a Top-Ranked Value Stock: Should You Buy?

·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

East West Bancorp (EWBC)

Headquartered in Pasadena, CA, East West Bancorp is the bank holding company for East West Bank. Incorporated in 1998, the company serves as a financial bridge between the United States and China by providing various consumer as well as commercial banking services to the Asian-American community.

EWBC boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of East West Bancorp are trading at a forward earnings multiple of 9X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 9.3X, and a Price/Sales ratio of 4.7X.

Many value investors pay close attention to a company's earnings as well. For EWBC, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $7.79 per share for 2022. Per share EWBC boasts an average earnings surprise of 4.7%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding EWBC to their portfolios.


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Zacks Investment Research