Why East West Bancorp (EWBC) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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
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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Banks - West industry's P/E of 8.8X, shares of East West Bancorp are trading at a forward P/E of 8X. EWBC also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 7X, and a Price/Sales ratio of 2.5X.
Many value investors pay close attention to a company's earnings as well. For EWBC, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $8.41 per share for 2023. Per share EWBC boasts an average earnings surprise of 3.7%.
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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East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report
