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Here's Why East West Bancorp (EWBC) is a Strong Value Stock

·2 min read

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

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 10.6X for the current fiscal year compared to the Banks - West industry's P/E of 10.7X. Additionally, EWBC has a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 9.9X. Value investors should also note EWBC's Price/Sales ratio of 5.4X.

Many value investors pay close attention to a company's earnings as well. For EWBC, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.41 to $7.01 per share for 2022. Per share EWBC boasts an average earnings surprise of 6.3%.

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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