Customers Bancorp(US:CUBI) ZACKSยท2025-07-01 17:01Core Viewpoint - Customers Bancorp (CUBI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their trading actions based on these estimates can lead to significant price movements [3]. Business Improvement Indicators - The upgrade in ratings and rising earnings estimates suggest an improvement in Customers Bancorp's underlying business, which could lead to an increase in stock price as investors respond positively [4]. Importance of Earnings Estimate Revisions - Research indicates a strong link between earnings estimate revisions and stock performance, emphasizing the importance of tracking these revisions for investment decisions [5]. - The Zacks Rank system effectively leverages earnings estimate revisions to classify stocks, providing a structured approach to investment [6]. Specific Earnings Estimates for Customers Bancorp - For the fiscal year ending December 2025, Customers Bancorp is projected to earn $6.33 per share, with a 1.1% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9]. - Customers Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].