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Are Investors Undervaluing Credicorp (BAP) Right Now?
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.
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.
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.
One company value investors might notice is Credicorp (BAP - Free Report) . BAP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
BAP is also sporting a PEG ratio of 0.41. 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 has an average PEG of 0.83 right now. Over the past 52 weeks, BAP's PEG has been as high as 0.63 and as low as 0.31, with a median of 0.37.
Finally, investors should note that BAP has a P/CF ratio of 7.96. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.30. 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 7.84.
Another great Banks - Foreign stock you could consider is BanColombia (CIB - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of BanColombia currently holds a Forward P/E ratio of 5.28, and its PEG ratio is 0.26. In comparison, its industry sports average P/E and PEG ratios of 8.28 and 0.83.
CIB's price-to-earnings ratio has been as high as 9.02 and as low as 3.97, with a median of 5.12, while its PEG ratio has been as high as 0.63 and as low as 0.21, with a median of 0.27, all within the past year.
Furthermore, BanColombia holds a P/B ratio of 0.94 and its industry's price-to-book ratio is 1.57. CIB's P/B has been as high as 1.14, as low as 0.56, with a median of 0.83 over the past 12 months.
These are only a few of the key metrics included in Credicorp and BanColombia strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BAP and CIB look like an impressive value stock at the moment.