Should Value Investors Buy Customers Bancorp (CUBI) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.One company value investors might notice is Customers Bancorp (CUBI). CUBI is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.81, while its industry has an average P/E of 11.22. Over the past 52 weeks, CUBI's Forward P/E has been as high as 9.81 and as low as 6.09, with a median of 7.92. Another notable valuation metric for CUBI is its P/B ratio of 1.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CUBI's current P/B looks attractive when compared to its industry's average P/B of 1.90. Over the past 12 months, CUBI's P/B has been as high as 1.26 and as low as 0.78, with a median of 0.95.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CUBI has a P/S ratio of 1.64. This compares to its industry's average P/S of 2.27.Finally, we should also recognize that CUBI has a P/CF ratio of 13.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CUBI's P/CF compares to its industry's average P/CF of 16.71. Within the past 12 months, CUBI's P/CF has been as high as 13.56 and as low as 7.09, with a median of 9.24.These figures are just a handful of the metrics value investors tend to look at, but they help show that Customers Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CUBI feels like a great value stock at the moment.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Customers Bancorp, Inc (CUBI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks