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Are Investors Undervaluing Credicorp (BAP) Right Now?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.29, while its industry has an average P/E of 10.47. Over the past year, BAP's Forward P/E has been as high as 11.83 and as low as 7.58, with a median of 8.88.

Investors should also note that BAP holds a PEG ratio of 0.66. 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 0.76 right now. Over the last 12 months, BAP's PEG has been as high as 0.85 and as low as 0.48, with a median of 0.58.

We should also highlight that BAP has a P/B ratio of 2.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.27. Over the past year, BAP's P/B has been as high as 2.31 and as low as 1.37, with a median of 1.67.

Finally, investors should note that BAP has a P/CF ratio of 11.14. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.64. Within the past 12 months, BAP's P/CF has been as high as 11.80 and as low as 7.77, with a median of 9.43.

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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