- The bullish cycle that started in bank stocks amid growing speculation over the Fed's imminent rate hike is likely to hold for the next 2-3 years as interest rates increase.
- Regional banks are a good pick to ride the trend. Their small size makes them likely to outperform larger banks, provided the fundamentals, management execution, and valuation are right.
- CUBI stands out as a smart choice. Its historically outperformed similarly sized regional banks and looks set to continue soaring as long as the bullish cycle in bank stocks continue.
- In the past few years CUBI's cost of deposits has declined while the pace of deposit growth has accelerated. Recent investments in block-chain based digital platforms have amplified this trend.
- Net income has expanded from the worst to the second-best in its peer-set, buy-and-hold shareholders have been richly rewarded, and the valuation is still way below its peer-set.
For further details see:
3 Reasons To Buy Customers Bancorp Despite Explosive Rally In Past One Year