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

·2 min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Banks - West industry's P/E of 9.5X, shares of East West Bancorp are trading at a forward P/E of 9X. EWBC also has a PEG Ratio of 0.9, a Price/Cash Flow ratio of 8.7X, and a Price/Sales ratio of 4.7X.

A company's earnings performance is important for value investors as well. For fiscal 2022, five analysts revised their earnings estimate higher in the last 60 days for EWBC, while the Zacks Consensus Estimate has increased $0.21 to $7.22 per share. EWBC also holds an average earnings surprise of 6.3%.

EWBC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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