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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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). BAP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.29, while its industry has an average P/E of 10.45. 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 figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAP's industry currently sports an average PEG of 0.73. 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.
Another notable valuation metric for BAP is its 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 2.28. 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 data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BAP's current P/CF looks attractive when compared to its industry's average P/CF of 17.72. Over the past 52 weeks, 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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Credicorp Ltd. (BAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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