Customers Bancorp (CUBI) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Customers Bancorp (CUBI) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of future stock price gains [3] - Customers Bancorp has a historical EPS growth rate of 3.8%, but projected EPS growth for this year is 22.4%, significantly surpassing the industry average of 15% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [5] - Customers Bancorp's year-over-year cash flow growth is 12.3%, well above the industry average of 0.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 14.6%, compared to the industry average of 5.7% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Current-year earnings estimates for Customers Bancorp have been revised upward, with the Zacks Consensus Estimate increasing by 9.3% over the past month [8] Group 5: Overall Positioning - Customers Bancorp has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]