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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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Credicorp (BAP - Free Report) . BAP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

BAP is also sporting a PEG ratio of 0.69. 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 PEG compares to its industry's average PEG of 0.76. BAP's PEG has been as high as 0.85 and as low as 0.48, with a median of 0.58, all within the past year.

Finally, our model also underscores that BAP has a P/CF ratio of 12.66. 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. BAP's current P/CF looks attractive when compared to its industry's average P/CF of 16.96. Over the past year, BAP's P/CF has been as high as 12.66 and as low as 8.15, with a median of 9.53.

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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