Storm The Castle Stock Of The Day: Credicorp (BAP)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Credicorp (BAP) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Credicorp as such a stock due to the following factors:
- BAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.1 million.
- BAP has traded 161,654 shares today.
- BAP is trading at 1.99 times the normal volume for the stock at this time of day.
- BAP crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.EXCLUSIVE OFFER: Get the inside scoop on opportunities in BAP with the Ticky from Trade-Ideas. See the FREE profile for BAP NOW at Trade-IdeasMore details on BAP: Credicorp Ltd., through its subsidiaries, provides financial services primarily in Peru, the Cayman Islands, Bolivia, Chile, Colombia, and Panama. It operates in four segments: Banking, Insurance, Pension Funds, and Investment Banking. The stock currently has a dividend yield of 2%. BAP has a PE ratio of 13.2. Currently there are 4 analysts that rate Credicorp a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for Credicorp has been 352,200 shares per day over the past 30 days. Credicorp has a market cap of $10.5 billion and is part of the financial sector and banking industry. The stock has a beta of 0.62 and a short float of 1.9% with 2.51 days to cover. Shares are down 1.1% year-to-date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Credicorp as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and feeble growth in the company's earnings per share.Highlights from the ratings report include:
- BAP's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has decreased by 21.1% when compared to the same quarter one year ago, dropping from $227.53 million to $179.43 million.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, BAP has underperformed the S&P 500 Index, declining 15.64% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full Credicorp Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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