We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BAP or BCH: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Banks - Foreign stocks are likely familiar with Credicorp (BAP - Free Report) and Banco De Chile (BCH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Credicorp and Banco De Chile are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that BAP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BAP currently has a forward P/E ratio of 8.45, while BCH has a forward P/E of 8.66. We also note that BAP has a PEG ratio of 0.47. 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. BCH currently has a PEG ratio of 1.30.
Another notable valuation metric for BAP is its P/B ratio of 1.46. 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. For comparison, BCH has a P/B of 1.90.
Based on these metrics and many more, BAP holds a Value grade of A, while BCH has a Value grade of C.
BAP has seen stronger estimate revision activity and sports more attractive valuation metrics than BCH, so it seems like value investors will conclude that BAP is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BAP or BCH: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with Credicorp (BAP - Free Report) and Banco De Chile (BCH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Credicorp and Banco De Chile are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that BAP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BAP currently has a forward P/E ratio of 8.45, while BCH has a forward P/E of 8.66. We also note that BAP has a PEG ratio of 0.47. 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. BCH currently has a PEG ratio of 1.30.
Another notable valuation metric for BAP is its P/B ratio of 1.46. 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. For comparison, BCH has a P/B of 1.90.
Based on these metrics and many more, BAP holds a Value grade of A, while BCH has a Value grade of C.
BAP has seen stronger estimate revision activity and sports more attractive valuation metrics than BCH, so it seems like value investors will conclude that BAP is the superior option right now.