This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Cheapest Bank Stocks (Update 1)

2. Popular

BPOP Chart BPOP data by YCharts

Shares of Popular (BPOP), of Hato Rey, Puerto Rico, closed at $33.31 Friday, returning a 60% this year, following a 50% return during 2012. The shares trade for 9.3 times the consensus 2015 EPS estimate of 3.57. The consensus 2014 EPS estimate is $3.12.

Popular owes $935 million to the U.S. Treasury for bailout assistance received in December 2008 through the Troubled Assets Relief Program, or TARP.

The company reported second-quarter net income applicable to common stock of $326.5 million, or $3.18 a share, increasing from $64.8 million, or 63 cents a share, a year earlier. The second quarter featured significant one-time items, including an after-tax gain of $156.6 million from the initial public offering in April of its former transaction processing subsidiary Evertec (EVTC). After selling a portion of its Evertec shares, Popular had a 33.5% stake in the former subsidiary as of June 30.

Popular also sold about $435 million in nonperforming mortgage loans during the second quarter, booking an after-tax loss of $107.1 million.

Excluding the gains on the Evertec IPO and sale of shares, accounting adjustments from the discontinuation "the elimination of its proportionate ownership share of intercompany transactions with EVERTEC from their respective revenue and expense categories," and the "impact of the Puerto Rico tax reform, Popular said its adjusted second-quarter earnings came to $68.1 million.

Popular has been working for several years to move beyond the severe and extended recession in Puerto Rico. The company said that as of June 30, nonperforming loans made up 2.85% of its total loans held in portfolio, reaching "their lowest level since 2006."

KBW analyst Brian Klock rates Popular "outperform," with a price target of $36, and in a note to clients on July 18 wrote, "We believe core earnings power and fundamentals continue to improve and while provisions [for loan losses] were higher this quarter, we expect more credit leverage in the quarters to come to help drive bottom-line growth."

"BPOP remains one of the few larger regional banks with strong capital levels, solid [pre-tax, pre-provision] ROA levels (with levers to improve ROA) and credit leverage," according to Klock. "Plus, we believe BPOP is well-positioned to exit TARP within the next 2-4 quarters without a common raise."

Popular is quite a recovery story, and the bank hasn't finished traveling its path to solid profitability, meaning there could be plenty of upside heading into the TARP repayment.

Interested in more on Popular, Inc.? See TheStreet Ratings' report card for this stock.
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $44.23 0.00%
BAC $14.05 0.00%
COF $69.12 0.00%
DFS $54.83 0.00%
JPM $61.24 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs