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Should Value Investors Buy Credicorp (BAP) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is Credicorp (BAP - Free Report) . BAP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.29, which compares to its industry's average of 10.54. Over the last 12 months, BAP's Forward P/E has been as high as 11.83 and as low as 7.58, with a median of 8.88.

We 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 0.71 right now. Over the past 52 weeks, BAP's PEG has been as high as 0.85 and as low as 0.48, with a median of 0.58.

Investors should also recognize 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 2.33. BAP's P/B has been as high as 2.31 and as low as 1.37, with a median of 1.67, over the past year.

Finally, investors should note that BAP has a P/CF ratio of 11.14. 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. This stock's P/CF looks attractive against its industry's average P/CF of 18.19. Over the past year, BAP's P/CF has been as high as 11.80 and as low as 7.77, with a median of 9.43.

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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