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Is Credicorp (BAP) Stock Undervalued 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Credicorp (BAP - Free Report) . BAP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.56. This compares to its industry's average Forward P/E of 7.92. BAP's Forward P/E has been as high as 9.68 and as low as 6.90, with a median of 7.96, all within the past year.

We also note that BAP holds a PEG ratio of 0.44. 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 0.78 right now. Within the past year, BAP's PEG has been as high as 0.45 and as low as 0.31, with a median of 0.38.

Investors should also recognize that BAP has a P/B ratio of 1.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.50. Within the past 52 weeks, BAP's P/B has been as high as 1.83 and as low as 1.28, with a median of 1.47.

Finally, we should also recognize that BAP has a P/CF ratio of 7.76. 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 13.93. Over the past 52 weeks, BAP's P/CF has been as high as 9.14 and as low as 6.30, with a median of 7.47.

These are only a few of the key metrics included in Credicorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BAP looks like an impressive value stock at the moment.


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