Customers Bancorp, Inc. CUBI

Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

Customers Bancorp has seen its share price move around in recent months, yet the bigger story for investors is whether the current US$77.06 level still lines up with what its earnings can support. With the stock having already delivered a sizeable multi year gain, the obvious question is how much of the bank's earnings power is already reflected in today's valuation. Over the past 3 years, Customers Bancorp has returned 123.7%, which puts real pressure on today’s buyers to judge whether the...