Credicorp (BAP) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Credicorp ( BAP) as a strong 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 $65.7 million.
  • BAP has traded 71,657 shares today.
  • BAP is trading at 5.94 times the normal volume for the stock at this time of day.
  • BAP is trading at a new high 5.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 1.6%. BAP has a PE ratio of 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 465,800 shares per day over the past 30 days. Credicorp has a market cap of $13.5 billion and is part of the financial sector and banking industry. The stock has a beta of 0.83 and a short float of 1.5% with 1.92 days to cover. Shares are up 47.5% 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 expanding profit margins 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's earnings per share declined by 8.1% 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 increased its bottom line by earning $11.59 versus $10.23 in the prior year. This year, the market expects an improvement in earnings ($12.43 versus $11.59).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.3%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income has decreased by 9.6% when compared to the same quarter one year ago, dropping from $265.74 million to $240.23 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 9.21% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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