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Are Investors Undervaluing Popular (BPOP) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
Popular (BPOP - Free Report) is a stock many investors are watching right now. BPOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.06, which compares to its industry's average of 10.90. Over the past year, BPOP's Forward P/E has been as high as 10.33 and as low as 7.62, with a median of 9.02.
We should also highlight that BPOP has a P/B ratio of 0.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.57. BPOP's P/B has been as high as 1.11 and as low as 0.88, with a median of 0.99, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BPOP has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.92.
Finally, investors should note that BPOP has a P/CF ratio of 8.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BPOP's current P/CF looks attractive when compared to its industry's average P/CF of 11.36. BPOP's P/CF has been as high as 16.54 and as low as 7.96, with a median of 9.43, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.
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Are Investors Undervaluing Popular (BPOP) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
Popular (BPOP - Free Report) is a stock many investors are watching right now. BPOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.06, which compares to its industry's average of 10.90. Over the past year, BPOP's Forward P/E has been as high as 10.33 and as low as 7.62, with a median of 9.02.
We should also highlight that BPOP has a P/B ratio of 0.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.57. BPOP's P/B has been as high as 1.11 and as low as 0.88, with a median of 0.99, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BPOP has a P/S ratio of 1.89. This compares to its industry's average P/S of 2.92.
Finally, investors should note that BPOP has a P/CF ratio of 8.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BPOP's current P/CF looks attractive when compared to its industry's average P/CF of 11.36. BPOP's P/CF has been as high as 16.54 and as low as 7.96, with a median of 9.43, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.