East West Bancorp (EWBC) is a Top-Ranked Value Stock: Should You Buy?

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their positions based on price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [8] Stock Example: East West Bancorp (EWBC) - East West Bancorp, headquartered in Pasadena, CA, serves as a financial bridge between the U.S. and China, focusing on consumer and commercial banking services [11] - The company holds a 3 (Hold) Zacks Rank and a VGM Score of B, with a Value Style Score of B due to a forward P/E ratio of 10.29 [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate of $10.31 per share indicate potential for growth, making EWBC a candidate for investors' consideration [12]