Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: East West Bancorp (EWBC) - EWBC currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - EWBC shares have increased by 2.98% over the past week, while the Zacks Banks - West industry has risen by 3.18% during the same period [5] - Over the last month, EWBC's price change is 14.11%, outperforming the industry's 11.55% [5] - In the last quarter, EWBC shares rose by 6.77%, and over the past year, they gained 21.45%, compared to the S&P 500's increases of 2.44% and 16.74%, respectively [6] Trading Volume - The average 20-day trading volume for EWBC is 546,251 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 6 earnings estimates for EWBC have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $9.04 to $9.42 [9] - For the next fiscal year, 8 estimates have also moved higher, indicating positive sentiment around the company's earnings potential [9] Conclusion - Given the strong performance metrics and positive earnings outlook, EWBC is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]

Core Insights - The year has been marked by volatility in the markets, initially driven by optimism surrounding President Trump's return, followed by market fluctuations due to tariff rollouts [1] - A strong recovery in the markets has been observed, reaching record highs, supported by the Federal Reserve's interest rate cuts, which have lowered rates by 75 basis points this year [2] - Banks are expected to benefit from a favorable operating environment in 2026, with anticipated growth in net interest income (NII) and deal-making activities [4] Banking Sector Overview - The Federal Reserve's interest rate cuts and stabilizing funding costs are setting the stage for a potentially favorable 2026 for banks, with expectations of increased revenues [2][8] - Banks are focusing on artificial intelligence (AI) and technology to enhance client experiences and expand online presence, which is crucial for capturing the growing mobile banking population [3] - Consumer spending remains resilient, and credit demand is showing early signs of recovery, contributing to a positive outlook for bank stocks [4] Investment Opportunities - East West Bancorp (EWBC), U.S. Bancorp (USB), and KeyCorp (KEY) are identified as compelling investment opportunities in the banking sector, with each company having a market cap exceeding $10 billion and expected earnings growth of more than 5% in 2026 [5] - EWBC has a market cap of $15.6 billion, with projected earnings growth of 13.4% this year and 7.4% in 2026, supported by solid loan demand and fee income focus [12] - USB, with a market cap of $83.5 billion, is expected to see earnings growth of 14.1% this year and 7.1% in 2026, bolstered by strategic acquisitions and rising NII [18] - KeyCorp, having a market cap of $22.4 billion, is projected to achieve earnings growth of 27.6% this year and 19.6% in 2026, benefiting from strong loan and deposit balances [23] Company-Specific Insights - East West Bancorp operates over 110 locations in the U.S. and China, with total assets of $79.7 billion and a focus on improving fee income and acquiring low-cost deposits [10][11] - U.S. Bancorp has strengthened its market position through acquisitions and partnerships, enhancing its digital capabilities and fee-based businesses [16][17] - KeyCorp is expanding its product offerings and market share through opportunistic acquisitions and is consolidating its branch network to adapt to rising digital banking demand [22]

Core Viewpoint - The article does not provide any specific insights or analysis regarding companies or industries, focusing instead on the authors' lack of positions in the mentioned stocks [1] Group 1 - No relevant company or industry information is presented in the article [1]

Core Insights - The investment landscape has experienced significant volatility this year, starting with optimism due to the new administration but facing challenges from tariffs and market fluctuations [1][2] Market Overview - Tariffs have been implemented but are less severe than expected, leading to a market rebound driven by Federal Reserve interest rate cuts and AI trends [2] - Bank stocks have remained a focal point amid macroeconomic uncertainties and geopolitical risks [2] Bank Performance and Recommendations - The operating environment for banks is improving, with rising loan demand as interest rates decline [3] - Analysts recommend focusing on fundamentally strong banks such as East West Bancorp (EWBC), Valley National Bancorp (VLY), and F.N.B. Corporation (FNB) for potential investment opportunities [3][5] Analyst Insights - Analysts leverage deep sector insights to evaluate company fundamentals against economic conditions, making their recommendations valuable for identifying strong investment candidates [4] Selected Bank Stocks - East West Bancorp (EWBC) has a market cap of $15.6 billion, with earnings projected to grow 7.4% in 2026 and a year-to-date growth of 13.4% [9][11] - Valley National Bancorp (VLY) has a market cap of $6.6 billion, with earnings expected to increase 28.1% in 2026 and a year-to-date growth of 31.6% [17] - F.N.B. Corporation (FNB) has a market cap of $6.3 billion, with earnings projected to rise 14.2% in 2026 and a year-to-date growth of 18.6% [22] Growth Drivers - EWBC's growth is supported by solid liquidity, loan demand, and a strong capital distribution plan [10] - VLY's growth is driven by robust loan balances, strategic expansions, and margin improvements [16] - FNB's growth is bolstered by stabilizing deposit costs, loan demand, and planned branch expansions [21]

Core Insights - The article discusses the performance of East West Bancorp (EWBC) stock, which was previously recommended as a buy when trading at $88 per share in March 2025, and highlights its subsequent performance over nine months [1]. Company Analysis - East West Bancorp's stock performance is noted, with a specific reference to its trading price and the analyst's previous recommendation [1]. Analyst Background - The author has a background in Business Administration and has completed CFA level 1, indicating a solid foundation in financial analysis [1]. - The author emphasizes a preference for fundamental analysis over technical analysis, focusing on actual company performance rather than stock price movements [1].

Core Viewpoint - 2025 is expected to be a strong year for East West Bancorp (EWBC), driven by favorable balance sheet repricing dynamics and robust volume growth [1] Group 1: Company Performance - East West Bancorp has experienced strong volume growth, contributing positively to its overall performance [1] - The balance sheet repricing dynamics have acted as a tailwind for the firm, enhancing its financial position [1]

Core Viewpoint - 2025 is expected to be a strong year for East West Bancorp (EWBC), driven by favorable balance sheet repricing dynamics and robust volume growth [1] Group 1: Company Performance - East West Bancorp has experienced strong volume growth alongside positive balance sheet repricing, contributing to its overall performance [1] Group 2: Investment Strategy - The investment approach emphasizes a long-term, buy-and-hold strategy, focusing on stocks that can consistently deliver high-quality earnings, particularly in the dividend and income sectors [1]

Core Viewpoint - East West Bancorp (EWBC) shares have shown a 1.2% increase over the past four weeks, closing at $99.52, with a potential upside of 25.4% based on Wall Street analysts' mean price target of $124.81 [1] Price Targets and Analyst Estimates - The mean estimate consists of 16 short-term price targets with a standard deviation of $9.8, indicating variability among analysts; the lowest estimate is $106.00 (6.5% increase), while the highest is $145.00 (45.7% increase) [2] - Analysts' price targets can be misleading, as empirical research suggests they rarely indicate actual stock price movements, and analysts often set overly optimistic targets due to business incentives [7][8] Earnings Estimates and Analyst Agreement - Analysts are optimistic about EWBC's earnings prospects, as indicated by a positive trend in earnings estimate revisions; the Zacks Consensus Estimate for the current year has increased by 3.3% with six upward revisions and no negative revisions [11][12] - EWBC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [13] Conclusion on Price Movement - While consensus price targets may not be reliable for predicting the extent of gains, the direction indicated by these targets appears to be a useful guide for potential price movement [14]

Financial Performance - The company's net income for Q3 2025 was $368 million, an increase of $69 million or 23% year-over-year, while net income for the first nine months was $969 million, up $96 million or 11% from the prior year [225]. - Basic and diluted earnings per share for Q3 2025 increased 24% to $2.68 and $2.65, respectively, while for the first nine months, both increased 12% to $7.03 and $6.97 [227]. - Noninterest income for Q3 2025 was $101 million, a 19% increase from Q3 2024, driven by higher customer derivative income, other income, and wealth management fees [251]. - For the first nine months of 2025, noninterest income reached $279 million, up 13% year-over-year, primarily due to increased wealth management fees, foreign exchange income, and lending fees [251]. - Income before income taxes for Q3 2025 was $465 million, a 19% increase from Q3 2024, with an income tax expense of $97 million and an effective tax rate of 20.8% [264]. Asset and Liability Management - Total assets reached $79.7 billion as of September 30, 2025, an increase of $3.7 billion from December 31, 2024, driven by a $2.0 billion or 4% increase in net loans and a $1.9 billion or 17% increase in available-for-sale debt securities [227]. - Total deposits were $66.6 billion as of September 30, 2025, an increase of $3.4 billion or 5% from December 31, 2024 [227]. - Stockholders' equity was $8.6 billion as of September 30, 2025, up $860 million or 11% from December 31, 2024, with book value per share increasing to $62.39, a 12% rise [227]. - The loan-to-deposit ratio was 84% as of September 30, 2025, compared to 85% as of December 31, 2024, with total deposits rising to $66.6 billion [348]. - The Company maintained $3.0 billion in FHLB advances as of September 30, 2025, down from $3.5 billion as of December 31, 2024 [350]. Interest Income and Margin - Net interest income before provision for credit losses for Q3 2025 was $678 million, an increase of $105 million or 18% from Q3 2024, and $1.9 billion for the first nine months, a $204 million or 12% increase year-over-year [227]. - The net interest margin for Q3 2025 was 3.53%, up 29 basis points year-over-year, and 3.41% for the first nine months, an increase of 13 basis points compared to the same period in 2024 [227]. - The interest rate spread increased to 2.54% for Q3 2025 compared to 2.04% for Q3 2024 [242]. - The average yield on total interest-earning assets decreased to 5.80% in 2025 from 6.08% in 2024, a decline of 0.28 percentage points [245]. - The average C&I loan yield for Q3 2025 was 7.71%, up from 7.02% in Q2 2025 and 7.93% in Q3 2024 [395]. Regulatory and Compliance - The Company is required to report Scope 1 and 2 greenhouse gas emissions starting in 2026 and Scope 3 emissions starting in 2027 under California Senate Bill No. 253 [215]. - The Bank completed and submitted its resolution plan on October 1, 2025, as required for institutions with total assets between $50 billion and $100 billion [216]. - The Company received an "Outstanding" rating in its most recent performance evaluation under the Community Reinvestment Act framework prior to the October 2023 final rule [218]. - The Company's Common Equity Tier 1 (CET1) capital ratio was 14.8% as of September 30, 2025, exceeding the minimum requirement of 4.5% [326]. - Total capital ratio stood at 16.2% as of September 30, 2025, above the regulatory requirement of 8.0% [326]. Credit Quality and Losses - The allowance for credit losses (ALLL) increased to $841.910 million as of September 30, 2025, up from $741.578 million as of December 31, 2024 [344]. - Nonaccrual loans decreased by $2 million or 1% to $156.934 million from $159.018 million as of December 31, 2024, with 20% of nonaccrual loans being less than 90 days delinquent [340]. - Criticized loans increased by $18 million or 2% to $1.2 billion during the nine months ended September 30, 2025 [337]. - Net charge-offs for the three months ended September 30, 2025, were $18.140 million, a decrease from $29.363 million for the same period in 2024 [344]. - The total nonperforming assets increased to $200.738 million, a 3% increase from $194.095 million as of December 31, 2024 [338]. Segment Performance - The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Treasury and Other, focusing on various customer types and financial products [265]. - Consumer and Business Banking segment net income decreased by $18 million or 13% year-over-year to $123 million for Q3 2025, primarily due to a $15 million decrease in net interest income and an $11 million increase in provision for credit losses [269]. - Commercial Banking segment net income decreased by $7 million or 5% year-over-year to $136 million for Q3 2025, driven by a $23 million decrease in net interest income [274]. - Treasury and Other segment net income increased significantly to $108.78 million for Q3 2025, compared to $14.42 million in Q3 2024, driven by a $143 million increase in net interest income [277]. - Noninterest income in the Consumer and Business Banking segment increased by $11 million or 14% year-over-year to $91.21 million for the first nine months of 2025 [270]. Market and Economic Conditions - The Federal Reserve resumed lowering interest rates in September 2025, indicating a cautious approach to further cuts due to economic uncertainty [213]. - The One Big Beautiful Bill Act, signed into law in July 2025, introduces significant tax changes that the Company is currently evaluating [219]. - The GENIUS Act, enacted in July 2025, establishes a federal licensing framework for payment stablecoins, potentially increasing competition for banks [220]. - California Senate Bill No. 132, effective January 1, 2025, requires banks to adopt a single sales factor for income apportionment, changing the previous three-factor formula [221]. - The Company believes it has adequate liquidity resources to meet operational needs and is not aware of any events likely to materially affect its liquidity [359].

Core Insights - East West Bancorp (EWBC) is a financial services company focused on the Asian-American community, operating primarily in the U.S. market [1] - Truist Financial has set a price target of $116 for EWBC, indicating a potential increase of approximately 13.49% from its current stock price [2][6] - Institutional investors, including Sequoia Financial Advisors LLC and Xponance Inc., have shown growing interest in EWBC, signaling confidence in its potential growth [3][4][6] Stock Performance - EWBC's current stock price is $102.09, reflecting a slight decrease of 0.26% or $0.27 [5][6] - The stock has fluctuated between $101.11 and $102.57 during the trading day, with a one-year high of $113.95 and a low of $68.27 [5] - The company's market capitalization is approximately $14.07 billion, with a trading volume of 213,700 shares today [5][6]