This Stock Is Extremely Profitable and Trades at 6 Times Forward Earnings
The $19 billion asset Customers Bancorp (NYSE: CUBI), based in Pennsylvania, continues to impress as the bank executes its niche banking and technology-driven strategy. In the first quarter of 2022, Customers reported diluted earnings per share of $2.18 on total revenue of nearly $186 million, both numbers that beat analyst estimates in the quarter. Customers' profitability in the quarter translated to a return on common equity of 24.26% and a return on assets, which shows how well a bank uses assets to generate earnings, of 1.63%. As far as the banking industry goes, both of these numbers are considered very good. I believe this stock presents a great opportunity, trading around six times forward earnings. Here's why.
When current leadership took over Customers Bancorp in 2009, the bank was struggling and very small. Management has grown assets very quickly over the last decade-plus and introduced strong technology and a diversified product set, all of which have begun to pay dividends.
Source Fool.com
