Credicorp Ltd (BAP): Banking's Highlighted Dud Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Credicorp ( BAP) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Credicorp fell $1.63 (-1%) to $158.92 on average volume. Throughout the day, 329,899 shares of Credicorp exchanged hands as compared to its average daily volume of 289,600 shares. The stock ranged in price between $158.64-$161.94 after having opened the day at $161.03 as compared to the previous trading day's close of $160.55. Other companies within the Banking industry that declined today were: Charter Financial ( CHFN), down 18.7%, Village Bank and Trust Financial Corporatio ( VBFC), down 8.7%, Credit Suisse ( DSLV), down 7.9%, and Flagstar Bancorp ( FBC), down 5.8%.
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Credicorp Ltd., through its subsidiaries, provides a range of financial products and services in Peru, Bolivia, and Panama. It operates in four segments: Banking, Insurance, Pension Fund, and Brokerage and Other. Credicorp has a market cap of $12.73 billion and is part of the financial sector. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are up 9.5% year to date as of the close of trading on Monday. Currently there are two analysts that rate Credicorp a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Credicorp as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Emclaire Financial Corporation ( EMCF), up 9.3%, Prudential Bancorp Inc. of Pennsylvania ( PBIP), up 9%, Shore ( SHBI), up 5.9%, and Old Point Financial Corporation ( OPOF), up 4.8%, were all gainers within the banking industry with BB&T ( BBT) being today's featured banking industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).

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