Is East West Stock a Good Investment?
East West Investment Advice | EWBC |
- Examine East West's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research East West's leadership team and their track record. Good management can help East West navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Regional Banks space and any emerging trends that could impact East West's business and its evolving consumer preferences.
- Compare East West's performance and market position to its competitors. Analyze how East West is positioned in terms of product offerings, innovation, and market share.
- Check if East West pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about East West's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in East West Bancorp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if East West Bancorp is a good investment.
Sell | Buy |
Strong Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine East West Stock
Researching East West's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 93.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.82. Some equities with similar Price to Book (P/B) outperform the market in the long run. East West Bancorp recorded earning per share (EPS) of 7.92. The entity last dividend was issued on the 4th of November 2024. The firm had 2:1 split on the 22nd of June 2004.
To determine if East West is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding East West's research are outlined below:
| Over 93.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Disposition of 9780 shares by Del Moral-niles Christopher of East West subject to Rule 16b-3 |
East West Quarterly Liabilities And Stockholders Equity |
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East West uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in East West Bancorp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to East West's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact East West's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises East West's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2000-01-13 | 1999-12-31 | 0.16 | 0.18 | 0.02 | 12 | ||
1999-04-13 | 1999-03-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2010-07-27 | 2010-06-30 | 0.18 | 0.21 | 0.03 | 16 | ||
2003-10-16 | 2003-09-30 | 0.3 | 0.33 | 0.03 | 10 | ||
2003-07-17 | 2003-06-30 | 0.27 | 0.3 | 0.03 | 11 | ||
2005-10-18 | 2005-09-30 | 0.47 | 0.52 | 0.05 | 10 | ||
2011-01-25 | 2010-12-31 | 0.29 | 0.35 | 0.06 | 20 | ||
2010-10-25 | 2010-09-30 | 0.21 | 0.27 | 0.06 | 28 |
East West Target Price Consensus
East target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. East West's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 13 | Strong Buy |
Most East analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand East stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of East West Bancorp, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationEast West Target Price Projection
East West's current and average target prices are 100.80 and 117.62, respectively. The current price of East West is the price at which East West Bancorp is currently trading. On the other hand, East West's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
East West Market Quote on 18th of January 2025
Target Price
Analyst Consensus On East West Target Price
East West Analyst Ratings
East West's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about East West stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of East West's financials, market performance, and future outlook by experienced professionals. East West's historical ratings below, therefore, can serve as a valuable tool for investors.Know East West's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as East West is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading East West Bancorp backward and forwards among themselves. East West's institutional investor refers to the entity that pools money to purchase East West's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Schroder Investment Management Group | 2024-09-30 | 2.6 M | Geode Capital Management, Llc | 2024-09-30 | 2.6 M | Amvescap Plc. | 2024-09-30 | 2.6 M | T. Rowe Price Associates, Inc. | 2024-09-30 | 2.5 M | Macquarie Group Ltd | 2024-09-30 | 2.1 M | Boston Partners Global Investors, Inc | 2024-09-30 | 1.9 M | Principal Financial Group Inc | 2024-09-30 | 1.8 M | Jennison Associates Llc | 2024-09-30 | 1.8 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1.8 M | Vanguard Group Inc | 2024-09-30 | 14.1 M | Blackrock Inc | 2024-09-30 | 12.6 M |
East West's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 13.79 B.Market Cap |
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East West's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.01 | |
| Return On Capital Employed | 0.14 | 0.15 | |
| Return On Assets | 0.02 | 0.01 | |
| Return On Equity | 0.19 | 0.14 |
Determining East West's profitability involves analyzing its financial statements and using various financial metrics to determine if East West is a good buy. For example, gross profit margin measures East West's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of East West's profitability and make more informed investment decisions.
Please note, the presentation of East West's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, East West's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of East West's management manipulating its earnings.
Evaluate East West's management efficiency
East West Bancorp has return on total asset (ROA) of 0.0156 % which means that it generated a profit of $0.0156 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1559 %, meaning that it created $0.1559 on every $100 dollars invested by stockholders. East West's management efficiency ratios could be used to measure how well East West manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Capital Employed is expected to grow to 0.15, whereas Return On Tangible Assets are forecasted to decline to 0.01. At present, East West's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 64.3 B, whereas Other Assets are projected to grow to (93.1 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 44.32 | 43.34 | |
| Tangible Book Value Per Share | 41.35 | 41.30 | |
| Enterprise Value Over EBITDA | 7.30 | 6.93 | |
| Price Book Value Ratio | 1.68 | 2.26 | |
| Enterprise Value Multiple | 7.30 | 6.93 | |
| Price Fair Value | 1.68 | 2.26 | |
| Enterprise Value | 6.3 B | 5.6 B |
East West's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Basic technical analysis of East Stock
As of the 18th of January 2025, East West shows the Downside Deviation of 1.85, mean deviation of 1.51, and Coefficient Of Variation of 1037.84. East West Bancorp technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.East West's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific East West insiders, such as employees or executives, is commonly permitted as long as it does not rely on East West's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases East West insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
East West's Outstanding Corporate Bonds
East West issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. East West Bancorp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most East bonds can be classified according to their maturity, which is the date when East West Bancorp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand East West's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing East West's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0868 | |||
| Market Risk Adjusted Performance | 0.5342 | |||
| Mean Deviation | 1.51 | |||
| Semi Deviation | 1.71 | |||
| Downside Deviation | 1.85 | |||
| Coefficient Of Variation | 1037.84 | |||
| Standard Deviation | 2.21 | |||
| Variance | 4.87 | |||
| Information Ratio | 0.0934 | |||
| Jensen Alpha | 0.204 | |||
| Total Risk Alpha | 0.2118 | |||
| Sortino Ratio | 0.1113 | |||
| Treynor Ratio | 0.5242 | |||
| Maximum Drawdown | 14.74 | |||
| Value At Risk | (2.70) | |||
| Potential Upside | 3.93 | |||
| Downside Variance | 3.43 | |||
| Semi Variance | 2.91 | |||
| Expected Short fall | (1.72) | |||
| Skewness | 1.11 | |||
| Kurtosis | 4.96 |
| Risk Adjusted Performance | 0.0868 | |||
| Market Risk Adjusted Performance | 0.5342 | |||
| Mean Deviation | 1.51 | |||
| Semi Deviation | 1.71 | |||
| Downside Deviation | 1.85 | |||
| Coefficient Of Variation | 1037.84 | |||
| Standard Deviation | 2.21 | |||
| Variance | 4.87 | |||
| Information Ratio | 0.0934 | |||
| Jensen Alpha | 0.204 | |||
| Total Risk Alpha | 0.2118 | |||
| Sortino Ratio | 0.1113 | |||
| Treynor Ratio | 0.5242 | |||
| Maximum Drawdown | 14.74 | |||
| Value At Risk | (2.70) | |||
| Potential Upside | 3.93 | |||
| Downside Variance | 3.43 | |||
| Semi Variance | 2.91 | |||
| Expected Short fall | (1.72) | |||
| Skewness | 1.11 | |||
| Kurtosis | 4.96 |
Consider East West's intraday indicators
East West intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of East West stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 7634.4 | |||
| Daily Balance Of Power | 1.039683 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 100.46 | |||
| Day Typical Price | 100.57 | |||
| Price Action Indicator | 0.99 | |||
| Period Momentum Indicator | 1.31 |
East West Corporate Filings
F3 | 10th of January 2025 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
| 13th of December 2024 Other Reports | ViewVerify | |
F4 | 3rd of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 20th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
East Stock media impact
Far too much social signal, news, headlines, and media speculation about East West that are available to investors today. That information is available publicly through East media outlets and privately through word of mouth or via East internal channels. However, regardless of the origin, that massive amount of East data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of East West news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of East West relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to East West's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive East West alpha.
East West Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards East West can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
East West Bancorp Historical Investor Sentiment
Investor biases related to East West's public news can be used to forecast risks associated with an investment in East. The trend in average sentiment can be used to explain how an investor holding East can time the market purely based on public headlines and social activities around East West Bancorp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
East West's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for East West and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average East West news discussions. The higher the estimate score, the more favorable the investor's outlook on East West.
East West Maximum Pain Price Across April 17th 2025 Option Contracts
East West's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of East West close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of East West's options.
East West Corporate Executives
Elected by the shareholders, the East West's board of directors comprises two types of representatives: East West inside directors who are chosen from within the company, and outside directors, selected externally and held independent of East. The board's role is to monitor East West's management team and ensure that shareholders' interests are well served. East West's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, East West's outside directors are responsible for providing unbiased perspectives on the board's policies.
| Christopher CFA | Executive CFO | Profile | |
| Irene Oh | CFO, Executive VP, CFO of East West Bank and Executive VP of East West Bank | Profile | |
| Parker Shi | Executive COO | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in East West Bancorp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of East West. If investors know East will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about East West listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.059 | Dividend Share 2.13 | Earnings Share 7.92 | Revenue Per Share | Quarterly Revenue Growth 0.097 |
The market value of East West Bancorp is measured differently than its book value, which is the value of East that is recorded on the company's balance sheet. Investors also form their own opinion of East West's value that differs from its market value or its book value, called intrinsic value, which is East West's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because East West's market value can be influenced by many factors that don't directly affect East West's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between East West's value and its price, as these two are different measures arrived at by various means. Investors typically determine if East West is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, East West's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.