| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | East West Net Income | 345,878,000 | 384,677,000 | 431,677,000 | 388,509,300 | 703,700,000 | East West Gross Profit | 980,006,000 | 1,119,605,000 | 1,188,077,000 | 1,069,269,300 | 1,530,000,000 |
East West slips -0.6129
 | By Ellen Johnson | Macroaxis Story |
This article is aimed at all current or potential East West investors. I will look into why albeit cyclical East West disturbance, the long term basic indicators of the company are still strong. What is East West Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of East West to move above current price in 30 days from now is about 49.35%. The East West Bancorp probability density function shows the probability of East West Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, East West Bancorp has beta of -0.3895 suggesting as returns on benchmark increase, returns on holding East West are expected to decrease at a much smaller rate. During bear market, however, East West Bancorp is likely to outperform the market. Additionally, the company has an alpha of 0.3529 implying that it can potentially generate 0.3529% excess return over S&P 500 after adjusting for the inherited market risk (beta). This firm dividends can provide a clue to current valuation of the stock. East West one year expected dividend income is about $0.41 per share.
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Reviewed by Gabriel Shpitalnik
On a scale of 0 to 100 East West holds performance score of 11. The firm shows Beta (market volatility) of -0.3895 which denotes to the fact that as returns on market increase, returns on owning East West are expected to decrease at a much smaller rate. During bear market, East West is likely to outperform the market. Although it is extremely important to respect East West Bancorp historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By reviewing East West Bancorp technical indicators you can presently evaluate if the expected return of 0.2307% will be sustainable into the future. Please utilizes East West Bancorp Expected Short fall, Day Median Price and the relationship between Potential Upside and Accumulation Distribution to make a quick decision on weather East West price patterns will revert. What is the right price you would pay to acquire a share of East West? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.
What is happening with East West Bancorp this year
Annual and quarterly reports issued by East West Bancorp are formal financial statements that are published yearly and quarterly and sent to East stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as East West often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
East West Gross Profit
East West Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing East West previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show East West Gross Profit growth over the last 10 years. Please check East West's gross profit and other fundamental indicators for more details.
Breaking down East West Further
The company currently holds 660.55M in liabilities with Debt to Equity (D/E) ratio of 9.36 indicating the organisation may have difficulties to generate enough cash to satisfy its financial obligations. The latest bullish price patterns experienced by current East West Bancorp shareholders could raise concerns from investors as the firm closed today at a share price of 51.63 on 540078 in volume. The company management have been very successful with rebalancing the firm components at opportune times to take advantage of market volatility in February. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.3384. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. East West preserves 3.32b of total asset. East West is trading at 51.89 which is 0.61 percent decrease. Started trading at 51.89. East West Price to Earnings Ratio is decreasing over the last 5 years. Also, East West Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment.
Taking everything into account, our analysis show that East West Almost neglects market trends. The company is undervalued and projects probability of distress low for the next 2 years. Our final buy/sell recommendation on the company is Hold.
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