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Are Investors Undervaluing Popular (BPOP) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Popular (BPOP - Free Report) is a stock many investors are watching right now. BPOP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.04. This compares to its industry's average Forward P/E of 10.83. Over the past year, BPOP's Forward P/E has been as high as 11.26 and as low as 7.81, with a median of 9.43.
We also note that BPOP holds a PEG ratio of 0.59. 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. BPOP's industry has an average PEG of 1.16 right now. Within the past year, BPOP's PEG has been as high as 0.92 and as low as 0.50, with a median of 0.60.
Another valuation metric that we should highlight is BPOP's P/B ratio of 1.43. 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. This stock's P/B looks solid versus its industry's average P/B of 1.89. Over the past 12 months, BPOP's P/B has been as high as 1.47 and as low as 0.98, with a median of 1.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BPOP has a P/S ratio of 1.91. This compares to its industry's average P/S of 2.17.
Finally, our model also underscores that BPOP has a P/CF ratio of 16.42. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.59. Within the past 12 months, BPOP's P/CF has been as high as 19.54 and as low as 11.90, with a median of 16.06.
These are only a few of the key metrics included in Popular'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, BPOP looks like an impressive value stock at the moment.
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Are Investors Undervaluing Popular (BPOP) Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Popular (BPOP - Free Report) is a stock many investors are watching right now. BPOP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.04. This compares to its industry's average Forward P/E of 10.83. Over the past year, BPOP's Forward P/E has been as high as 11.26 and as low as 7.81, with a median of 9.43.
We also note that BPOP holds a PEG ratio of 0.59. 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. BPOP's industry has an average PEG of 1.16 right now. Within the past year, BPOP's PEG has been as high as 0.92 and as low as 0.50, with a median of 0.60.
Another valuation metric that we should highlight is BPOP's P/B ratio of 1.43. 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. This stock's P/B looks solid versus its industry's average P/B of 1.89. Over the past 12 months, BPOP's P/B has been as high as 1.47 and as low as 0.98, with a median of 1.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BPOP has a P/S ratio of 1.91. This compares to its industry's average P/S of 2.17.
Finally, our model also underscores that BPOP has a P/CF ratio of 16.42. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.59. Within the past 12 months, BPOP's P/CF has been as high as 19.54 and as low as 11.90, with a median of 16.06.
These are only a few of the key metrics included in Popular'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, BPOP looks like an impressive value stock at the moment.