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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 to watch right now is Credicorp (BAP - Free Report) . BAP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.89 right now. For comparison, its industry sports an average P/E of 8.16. BAP's Forward P/E has been as high as 11.76 and as low as 6.90, with a median of 8.36, all within the past year.
We also note that BAP holds a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BAP's PEG compares to its industry's average PEG of 0.79. BAP's PEG has been as high as 0.63 and as low as 0.31, with a median of 0.37, all within the past year.
Another valuation metric that we should highlight is BAP's P/B ratio of 1.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.58. Over the past 12 months, BAP's P/B has been as high as 2.04 and as low as 1.28, with a median of 1.58.
Finally, our model also underscores that BAP has a P/CF ratio of 7.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BAP's P/CF compares to its industry's average P/CF of 14.35. Within the past 12 months, BAP's P/CF has been as high as 12.85 and as low as 6.30, with a median of 7.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Credicorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAP feels like a great value stock at the moment.
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Should Value Investors Buy Credicorp (BAP) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 to watch right now is Credicorp (BAP - Free Report) . BAP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.89 right now. For comparison, its industry sports an average P/E of 8.16. BAP's Forward P/E has been as high as 11.76 and as low as 6.90, with a median of 8.36, all within the past year.
We also note that BAP holds a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BAP's PEG compares to its industry's average PEG of 0.79. BAP's PEG has been as high as 0.63 and as low as 0.31, with a median of 0.37, all within the past year.
Another valuation metric that we should highlight is BAP's P/B ratio of 1.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.58. Over the past 12 months, BAP's P/B has been as high as 2.04 and as low as 1.28, with a median of 1.58.
Finally, our model also underscores that BAP has a P/CF ratio of 7.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BAP's P/CF compares to its industry's average P/CF of 14.35. Within the past 12 months, BAP's P/CF has been as high as 12.85 and as low as 6.30, with a median of 7.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Credicorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAP feels like a great value stock at the moment.