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Are Investors Undervaluing Credicorp (BAP) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Credicorp (BAP - Free Report) is a stock many investors are watching right now. BAP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

BAP is also sporting a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAP's industry currently sports an average PEG of 0.64. Over the past 52 weeks, BAP's PEG has been as high as 0.82 and as low as 0.41, with a median of 0.55.

Finally, our model also underscores that BAP has a P/CF ratio of 8.54. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.57. Within the past 12 months, BAP's P/CF has been as high as 9.54 and as low as 6.04, with a median of 8.07.

If you're looking for another solid Banks - Foreign value stock, take a look at Banco Santander Chile (BSAC - Free Report) . BSAC is a # 2 (Buy) stock with a Value score of A.

Shares of Banco Santander Chile are currently trading at a forward earnings multiple of 9.42 and a PEG ratio of 0.36 compared to its industry's P/E and PEG ratios of 7.94 and 0.64, respectively.

BSAC's price-to-earnings ratio has been as high as 16.14 and as low as 8.98, with a median of 9.83, while its PEG ratio has been as high as 8.32 and as low as 0.34, with a median of 1.43, all within the past year.

Furthermore, Banco Santander Chile holds a P/B ratio of 1.89 and its industry's price-to-book ratio is 1.41. BSAC's P/B has been as high as 2.04, as low as 1.32, with a median of 1.64 over the past 12 months.

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


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