East West Bancorp EWBC has outperformed the market over the past 5 years by 12.01% annually, producing an average annual return of 26.44%. If an investor had bought $100 of EWBC stock 5 years ago, it would be worth $313.72 today based on a price of $108.14. The key insight is the impact of compounded returns on cash growth over time.
East West Bancorp (EWBC) has been a standout performer in the financial sector, showcasing remarkable growth over the past five years. An investor who bought $100 worth of EWBC stock five years ago would now have a portfolio worth $313.72, based on the current stock price of $108.14 [2].
EWBC has outperformed the market by 12.01% annually, producing an average annual return of 26.44%. This impressive performance can be attributed to the company's robust financial health and positive earnings reports. The stock's market capitalization has grown to $14.90 billion, reflecting its strong market presence and investor confidence [2].
Several institutional investors and hedge funds have also shown faith in EWBC's prospects. The New York State Teachers Retirement System, for instance, increased its stake in EWBC by 4.0% during the first quarter, owning about 0.12% of the company's stock worth $15.157 million [1]. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings by 1,667.7% during the fourth quarter, owning 670,156 shares valued at $64.174 million [1]. These significant investments underscore the belief in EWBC's long-term potential.
The company's recent earnings results further underscore its strong performance. East West Bancorp reported earnings per share (EPS) of $2.09 for the quarter, beating analysts' consensus estimates by $0.04. The company also declared a quarterly dividend of $0.60, representing a $2.40 annualized dividend and a dividend yield of 2.20% [1].
Wall Street analysts have been largely bullish on EWBC, with eight analysts assigning a "buy" rating and five issuing a "hold" rating, while only one analyst has given a "sell" rating. The consensus rating is "Moderate Buy," with an average price target of $108.38 [1, 3]. This strong analyst support highlights EWBC's appeal to investors seeking growth opportunities.
The key insight from EWBC's performance is the power of compounded returns. Over time, even modest annual returns can result in significant cash growth. For investors, understanding this concept can help in making informed decisions and setting realistic expectations for their portfolios.
References:
[1] https://www.marketbeat.com/instant-alerts/filing-new-york-state-teachers-retirement-system-acquires-6538-shares-of-east-west-bancorp-inc-nasdaqewbc-2025-07-03/
[2] https://www.benzinga.com/insights/news/25/07/46357714/100-invested-in-east-west-bancorp-5-years-ago-would-be-worth-this-much-today
[3] https://www.tipranks.com/stocks/ewbc/forecast
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