Credicorp (BAP) Soars 7.5%: Is Further Upside Left in the Stock?

Credicorp BAP shares soared 7.5% in the last trading session to close at $340.22. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.3% loss over the past four weeks.

Broader positive market sentiments probably drove the Credicorp stock higher in last day's trading session, after a sharp sell-off the previous day.

This Peruvian finance company is expected to post quarterly earnings of $7.06 per share in its upcoming report, which represents a year-over-year change of +17.3%. Revenues are expected to be $1.75 billion, up 23.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Credicorp, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BAP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Credicorp is a member of the Zacks Banks - Foreign industry. One other stock in the same industry, Erste Group Bank AG EBKDY, finished the last trading session 1.1% lower at $61.84. EBKDY has returned 17.8% over the past month.

For Erste Group Bank, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.43. This represents a change of +49% from what the company reported a year ago. Erste Group Bank currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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