Should Value Investors Buy Credicorp (BAP) Stock?

BAP

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.

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

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 value investors might notice is Credicorp (BAP - Free Report) . BAP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

BAP is also sporting a PEG ratio of 0.43. 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 0.67 right now. Over the past 52 weeks, BAP's PEG has been as high as 0.49 and as low as 0.31, with a median of 0.41.

Investors should also recognize that BAP has a P/B ratio of 1.42. The P/B ratio is used to compare a stock's market value with 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 1.46. Over the past year, BAP's P/B has been as high as 1.83 and as low as 1.26, with a median of 1.43.

Finally, we should also recognize that BAP has a P/CF ratio of 7.68. 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 12.58. BAP's P/CF has been as high as 8.64 and as low as 6.30, with a median of 7.40, all within the past year.

These are just a handful of the figures considered in Credicorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BAP is an impressive value stock right now.

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