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Are Investors Undervaluing Credicorp (BAP) Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice 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 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BAP's industry has an average PEG of 0.70 right now. Over the last 12 months, BAP's PEG has been as high as 0.49 and as low as 0.31, with a median of 0.41.

Finally, our model also underscores that BAP has a P/CF ratio of 7.76. 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. BAP's current P/CF looks attractive when compared to its industry's average P/CF of 13.38. BAP's P/CF has been as high as 8.64 and as low as 6.36, with a median of 7.27, all within the past year.

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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