5 Most Undervalued Dividend Stocks To Buy According To Analysts

4. East West Bancorp, Inc. (NASDAQ:EWBC)

Number of Hedge Fund Holders: 32

Average Analyst Price Estimate: $82

California-based bank holding company East West Bancorp, Inc. (NASDAQ:EWBC) is one of the most undervalued dividend stocks according to Wall Street analysts. In October, Janney analyst Timothy Coffey started covering East West Bancorp, Inc. (NASDAQ:EWBC) with a Buy rating. Coffey said the bank is expected to benefit from the collapse of Silicon Valley Bank and First Republic Bank.

Here is what Aristotle Capital Management Value Equity has to say about East West Bancorp, Inc. (NASDAQ:EWBC) in its Q1 2022 investor letter:

“We purchased East West Bancorp in the third quarter of 2017; however, our history with the business stretches back further having twice previously invested. Companies we consider to be high-quality like East West tend to remain high quality, and we have long admired the business for its uniqueness among the otherwise homogenous U.S. banking industry. Its dominant market share built over generations in Asian communities – and difficult-to-replicate experience due to culture, geography and business practices – create distinct competitive advantages in our view. During our most recent holding period, the bank achieved sustained loan growth, a catalyst we identified, through its continued leadership position as the financial “bridge” for customers doing business in the U.S. and China. Moreover, East West also realized market share gains in its headquarters state of California. With these catalysts nearing completion, we decided to exit our investment to fund the purchase of Oshkosh. As always, we will continue to study East West and, in the future, may once again find an opportunity to be investors.”