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Is Credicorp (BAP) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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

We also note that BAP holds a PEG ratio of 0.42. 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 0.73. Within the past year, BAP's PEG has been as high as 0.63 and as low as 0.31, with a median of 0.36.

Finally, investors will want to recognize that BAP has a P/CF ratio of 8.42. 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. BAP's current P/CF looks attractive when compared to its industry's average P/CF of 12.24. Over the past year, BAP's P/CF has been as high as 12.85 and as low as 6.30, with a median of 8.34.

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.


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