Back to top

Image: Bigstock

Should Value Investors Buy Credicorp (BAP) Stock?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Credicorp (BAP - Free Report) . BAP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We also note that BAP holds a PEG ratio of 0.50. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BAP's PEG compares to its industry's average PEG of 0.66. Over the last 12 months, BAP's PEG has been as high as 0.82 and as low as 0.40, with a median of 0.55.

Investors should also recognize that BAP has a P/B ratio of 1.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BAP's current P/B looks attractive when compared to its industry's average P/B of 1.60. Over the past year, BAP's P/B has been as high as 1.60 and as low as 1.07, with a median of 1.39.

Finally, we should also recognize that BAP has a P/CF ratio of 8.64. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.91. BAP's P/CF has been as high as 9.54 and as low as 6.04, with a median of 7.97, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Credicorp is likely undervalued currently. And when considering the strength of its earnings outlook, BAP sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Credicorp Ltd. (BAP) - free report >>

Published in