Trade-Ideas LLC identified Credicorp ( BAP) as a "barbarian at the gate" (strong stocks crossing above resistance 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 $52.5 million.
  • BAP has traded 429,645 shares today.
  • BAP traded in a range 224.8% of the normal price range with a price range of $7.48.
  • BAP traded above its daily resistance level (quality: 237 days, meaning that the stock is crossing a resistance level set by the last 237 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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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 18. Currently there are 3 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 403,000 shares per day over the past 30 days. Credicorp has a market cap of $10.1 billion and is part of the financial sector and banking industry. The stock has a beta of 0.77 and a short float of 1.5% with 2.69 days to cover. Shares are up 30.3% year-to-date as of the close of trading on Wednesday.

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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 growth in earnings per share, increase in net income and notable return on equity. 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:
  • CREDICORP LTD has improved earnings per share by 18.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CREDICORP LTD increased its bottom line by earning $11.59 versus $10.23 in the prior year. This year, the market expects an improvement in earnings ($12.21 versus $11.59).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 17.3% when compared to the same quarter one year prior, going from $151.08 million to $177.15 million.
  • The gross profit margin for CREDICORP LTD is currently very high, coming in at 72.93%. 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 15.93% compares favorably to the industry average.
  • BAP, with its decline in revenue, slightly underperformed the industry average of 5.5%. Since the same quarter one year prior, revenues fell by 13.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • BAP has underperformed the S&P 500 Index, declining 8.32% 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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