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Should Value Investors Buy Credicorp (BAP) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Credicorp (BAP - Free Report) . BAP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

BAP is also sporting a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BAP's industry currently sports an average PEG of 0.74. Within the past year, BAP's PEG has been as high as 0.63 and as low as 0.31, with a median of 0.38.

Another valuation metric that we should highlight is BAP's P/B ratio of 1.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.40. Over the past year, BAP's P/B has been as high as 2.03 and as low as 1.28, with a median of 1.49.

Finally, investors will want to recognize that BAP has a P/CF ratio of 7.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.69. Within the past 12 months, BAP's P/CF has been as high as 12.83 and as low as 6.30, with a median of 7.54.

These are only a few of the key metrics included in Credicorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BAP looks like an impressive value stock at the moment.


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