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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Credicorp (BAP) is a stock many investors are watching right now. BAP is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
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 currently sports an average PEG of 0.72. 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 is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BAP's current P/B looks attractive when compared to its industry's average P/B of 2.20. 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, we should also recognize that BAP has a P/CF ratio of 11.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BAP's P/CF compares to its industry's average P/CF of 17.04. 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 are just a handful of the figures considered in Credicorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BAP is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Credicorp Ltd. (BAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
