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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $46.6 million.
  • BAP has traded 244,316 shares today.
  • BAP traded in a range 211.1% of the normal price range with a price range of $7.27.
  • BAP traded below its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on BAP:

Credicorp Ltd., through its subsidiaries, provides financial and health services primarily in Peru, the Cayman Islands, Bolivia, Chile, Colombia, and Panama. The company operates in four segments: Banking, Insurance, Pension Funds, and Investment Banking. The stock currently has a dividend yield of 1.3%. BAP has a PE ratio of 21.2. Currently there are 3 analysts that rate Credicorp a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Credicorp has been 291,100 shares per day over the past 30 days. Credicorp has a market cap of $12.1 billion and is part of the financial sector and banking industry. Shares are down 3.9% year-to-date as of the close of trading on Monday.

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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, notable return on equity and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 16.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market, CREDICORP LTD's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for CREDICORP LTD is rather high; currently it is at 69.07%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.48% trails the industry average.
  • CREDICORP LTD has improved earnings per share by 21.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CREDICORP LTD reported lower earnings of $7.12 versus $9.90 in the prior year. This year, the market expects an improvement in earnings ($10.95 versus $7.12).

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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