Are Investors Undervaluing Popular (BPOP) Right Now?
In This Article:
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Popular (BPOP) is a stock many investors are watching right now. BPOP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.64. This compares to its industry's average Forward P/E of 10.52. Over the past year, BPOP's Forward P/E has been as high as 11.08 and as low as 6.70, with a median of 9.30.
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 1.66. This compares to its industry's average P/S of 1.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Popular is likely undervalued currently. And when considering the strength of its earnings outlook, BPOP sticks out at as one of the market's strongest value stocks.
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
Popular, Inc. (BPOP) : Free Stock Analysis Report