Trade-Ideas LLC identified Credicorp ( BAP) as a weak on high 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 $31.7 million.
  • BAP has traded 99,547 shares today.
  • BAP is trading at 12.98 times the normal volume for the stock at this time of day.
  • BAP is trading at a new low 5.24% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. 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 (or avoid losses by trimming weak positions). 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.

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More details on BAP:

Credicorp Ltd., through its banking and non-banking subsidiaries, provides a range of financial, insurance, and health services and products primarily in Peru and internationally. It operates through four segments: Banking, Insurance, Pension Funds, and Investment Banking. The stock currently has a dividend yield of 1.8%. BAP has a PE ratio of 17. Currently there are 2 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 272,700 shares per day over the past 30 days. Credicorp has a market cap of $9.9 billion and is part of the financial sector and banking industry. The stock has a beta of 0.60 and a short float of 0.8% with 1.54 days to cover. Shares are down 22.9% year-to-date as of the close of trading on Thursday.

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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 growth in earnings per share. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • BAP's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 6.0%. 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 67.69%. Regardless of BAP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BAP's net profit margin of 23.76% compares favorably to the industry average.
  • BAP has underperformed the S&P 500 Index, declining 12.07% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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