Core Insights - As of September 17, 2025, three stocks in the financial sector are identified as potentially overbought, which may concern momentum-focused investors [1][2]. Company Summaries - **PagSeguro Digital Ltd (PAGS)**: Reported net revenue of R$5.1 billion and recurring net income of R$565 million for Q2 2025. The stock has gained approximately 19% over the past month, with a 52-week high of $10.78. The RSI value is 82.4, indicating overbought conditions. The stock closed at $10.74, with a momentum score of 58.79 and a value score of 95.74 [7]. - **Credicorp Ltd (BAP)**: UBS analyst raised the price target from $257 to $318, maintaining a Buy rating. The stock has increased around 7% over the past month, reaching a 52-week high of $33.17. The RSI value is 71.7, and the stock closed at $270.79 [7]. - **Galaxy Digital Inc (GLXY)**: The stock gained approximately 3.4% to close at $31.83. The RSI value is 71.7, indicating it is nearing overbought territory [7].

Investors with an interest in Banks - Foreign stocks have likely encountered both Credicorp (BAP) and Nu Holdings Ltd. (NU) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revis ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe ...

Financial Data and Key Metrics Changes - Statutory NPAT for FY 2025 was $28.1 million, including $52.3 million in post-tax significant items, reflecting a challenging year [41] - Pro forma NPAT decreased by 8.4% to $80.4 million, with group revenue declining by 1.5% [41][42] - EBITDA grew by 5.2% compared to the prior period, despite an overall revenue decline [9][41] Business Line Data and Key Metrics Changes - Trade business revenue grew by 1.3% and EBITDA increased by 5.4% [10][25] - Specialist Wholesale experienced a revenue decline of 3.2% but improved EBITDA by 5.2% due to network reconfiguration [26][30] - Retail revenue declined by 3.5%, with a significant impact from the difficult retail environment [33] Market Data and Key Metrics Changes - New Zealand's revenue declined by 3.2% in Australian dollar terms, reflecting challenging economic conditions [37] - The company closed four stores and opened two new locations in New Zealand to adapt to market conditions [38] Company Strategy and Development Direction - The company outlined six strategic imperatives: optimizing the network, one supply chain, customer focus, digitalizing the business, store fitness, and simplifying the business [15][52] - A focus on long-term sustainable profitability and cultural changes within the organization is emphasized [5][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced during the fiscal year but expressed confidence in the company's ability to execute its strategic reset [8][40] - The expectation for FY 2026 is that impacts will skew towards the second half, with a focus on recovery and sustainable performance [55] Other Important Information - The company declared a final dividend of $0.55 per share, representing a full-year payout ratio of 57% [12] - Significant items recognized in FY 2025 included $52.3 million, with 82% being non-cash items [43] Q&A Session Summary Question: Update on trade segment performance and recovery focus - Management confirmed that the trade segment is focused on recovery following disappointing performance in May and June [58][59] Question: Outlook for achieving sales CAGR and EBITDA CAGR targets - Management indicated that while they are not providing guidance for FY 2026, they will communicate progress towards long-term goals as results develop [63] Question: Impact of store closures on profitability - Management acknowledged the need to actively manage the network, including closing underperforming stores, and confirmed that two stores have been closed since July 1 [100][102] Question: Market share performance in trade and retail - Management stated that while market share was stable over the year, they acknowledged losing share in May and June, and emphasized the need for growth in the trade segment [87][88] Question: Performance of the loyalty program and its impact on sales - Management noted that it is early days for the loyalty program, and while they are pleased with initial growth, specific sales impact figures are not yet available [70][72]

Financial Data and Key Metrics Changes - Statutory NPAT for FY 2025 was $28.1 million, including $52.3 million in post-tax significant items, reflecting a challenging year [40] - Pro forma NPAT decreased by 8.4% to $80.4 million, with group revenue declining by 1.5% [40][41] - EBITDA grew by 5.2% year-over-year, despite a decline in pro forma impact by 8.4% [7][40] Business Line Data and Key Metrics Changes - Trade business revenue grew by 1.3% and EBITDA by 5.4%, while Specialist Wholesale saw a decline in revenue by 3.2% but an increase in EBITDA by 5.2% [24][25][30] - Retail revenue declined by 3.5%, with a significant impact from lower discretionary spending and higher operating costs [32][33] Market Data and Key Metrics Changes - New Zealand's revenue declined by 3.2% in Australian dollar terms, reflecting challenging economic conditions [35] - The company experienced a shift away from discretionary retail spending, impacting overall revenue performance [24][32] Company Strategy and Development Direction - The company outlined six strategic imperatives: optimizing the network, one supply chain, customer focus, digitalizing the business, store fitness, and simplifying the business [14][50] - A strategic reset is underway, focusing on long-term sustainable profitability and cultural changes within the organization [5][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in FY 2025 but expressed confidence in the company's ability to recover and grow in FY 2026 [6][51] - The focus will be on driving organic growth and improving operational efficiency through supply chain enhancements and digitization [51][52] Other Important Information - The company declared a final dividend of $0.55 per share, representing a full-year payout ratio of 57% [11] - Significant changes in the balance sheet were made to ensure financial clarity moving into FY 2026 [42][45] Q&A Session Summary Question: Outlook for the trade segment and recovery focus - Management emphasized the importance of recovery in the trade segment, linking it to overall group strategy and sales performance [55][56] Question: Cost allocation and expectations for FY 2026 - Management indicated that a significant reorganization is underway, and clarity on cost allocations will be provided in future quarters [58] Question: Expectations for achieving sales CAGR and EBITDA CAGR - Management committed to providing updates on progress towards five-year goals as results are reported, without giving specific guidance for FY 2026 [61] Question: Impact of loyalty program on sales - Management acknowledged the early stages of the loyalty program and its potential impact on sales, but specific metrics were not available [70][72] Question: Market share trends in trade and retail - Management noted that while market share was stable over the year, there were periods of decline, particularly in May and June [90] Question: Plans for store closures and profitability - Management confirmed ongoing evaluations of store performance and plans to close underperforming locations as necessary [102][105]

Financial Performance - Pro-forma revenue reached $19435 million, a decrease of 15% compared to FY24[15] - Pro-forma gross margin was 465%, a slight increase of 3 bps compared to FY24[15] - Pro-forma NPAT was $804 million, down 84% compared to the previous corresponding period[15] - Statutory NPAT was $281 million, including significant items of $523 million post-tax[17] - Net debt stood at $3648 million, an increase of 82% compared to FY24[15] - Cash conversion rate improved to 818%, compared to 769% in the previous corresponding period[15] Strategic Initiatives - The company closed or relocated 70 sites, including consolidating 23 smaller warehouses[17, 18] - The company opened 21 new branches and stores[17, 18] - $47 million of inventory was centralized as part of the supply chain consolidation[28] - The Autobarn loyalty program was strengthened, adding 500,000 new members, bringing the total to 17 million[29, 30]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Credicorp (BAP) currently holding a Momentum Style Score of A [2] - The Zacks Rank system complements Style Scores, with BAP rated 2 (Buy), indicating potential for outperformance in the market [3] Group 2: Performance Metrics of Credicorp (BAP) - BAP shares have increased by 1.08% over the past week, while the Zacks Banks - Foreign industry has risen by 1.6% during the same period [5] - Over the last month, BAP's price change is 11.88%, outperforming the industry's 4.52% [5] - In the last quarter, BAP shares rose by 23.98%, and over the past year, they increased by 49.76%, compared to the S&P 500's gains of 8.58% and 17.39% respectively [6] Group 3: Trading Volume and Earnings Outlook - BAP's average 20-day trading volume is 355,834 shares, which serves as a bullish indicator when combined with rising stock prices [7] - In the past two months, three earnings estimates for BAP have increased, raising the consensus estimate from $22.28 to $23.31 [9] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions noted [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, BAP is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a promising investment opportunity [11]

Group 1 - Crown Castle (CCI) is currently outperforming its peers in the Finance sector with a year-to-date return of approximately 10.8%, compared to the sector average of 10.7% [4] - The Zacks Rank for Crown Castle is 2 (Buy), indicating a positive outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for CCI's full-year earnings has increased by 2.2% over the past quarter, reflecting improved analyst sentiment [4] Group 2 - Crown Castle belongs to the REIT and Equity Trust - Other industry, which has seen a year-to-date gain of about 0.8%, indicating that CCI is performing better than its industry peers [6] - Another notable stock in the Finance sector is Credicorp (BAP), which has achieved a year-to-date increase of 38.1% and also holds a Zacks Rank of 2 (Buy) [5] - The Banks - Foreign industry, to which Credicorp belongs, has performed significantly well with a year-to-date increase of 34.9% [6]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 20.7% for Q2 2025, reflecting strong operating performance and disciplined risk management [13][52] - Net interest income increased by 4.2%, supported by a contraction in interest expenses and an improved funding mix [25][50] - The efficiency ratio stood at 44.2%, indicating effective cost control and scalability of digital investments [15][51] Business Line Data and Key Metrics Changes - Universal banking and insurance and pensions posted strong results, while microfinance continued to recover [13] - Fee income increased by 8.2%, driven by transactional activity at JAPI and BCP [26] - The innovation portfolio contributed 6.2% of risk-adjusted revenues, on track towards a 10% target for 2026 [13] Market Data and Key Metrics Changes - Peru's GDP is expected to grow by 3.2% in 2025, with domestic demand growing around 4.5% [8][29] - Inflation in Peru has remained below 2% for seven consecutive months, supporting recovery in private consumption [31][29] - The terms of trade have reached their highest level in 75 years, driven by elevated prices of gold, silver, and copper [29] Company Strategy and Development Direction - The company is focused on building a more agile, balanced, and forward-looking platform, emphasizing digital infrastructure and client engagement [10][16] - Investments in disruptive innovation are a key pillar of the long-term strategy, with a goal to enhance financial inclusion and sustainability [19][21] - The company aims to transition towards a more diversified business model where fee generation and client engagement are as critical as lending [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable resolution regarding the tax case with Sunnab, despite the payment of approximately 1.6 billion soles [12][53] - The macroeconomic environment is improving, with expectations of sustained engagement in the second half of the year [10][28] - The company anticipates loan growth to accelerate, particularly in retail banking, supporting a resilient net interest margin (NIM) [57] Other Important Information - The company has revised its full-year ROE guidance to around 19%, reflecting solid core performance and disciplined risk management [59] - The ongoing economic recovery is positively impacting the microfinance sector, with Mibanco's profitability rising by 16.3% [41] - Yape continues to scale, serving nearly 50 million monthly active users, and is expected to become a significant contributor to the company's revenue [17][39] Q&A Session Summary Question: What is driving the improvement in cost of risk? - Management explained that measures taken last year ensured portfolios are under risk appetite, leading to a low cost of risk. They anticipate higher yielding portfolios in the second half of the year [63][66] Question: What is the long-term vision for the physical branch network? - Management indicated that the role of branches has shifted from transactional to educational and commercial, with a significant reduction already made in the branch network [70][72] Question: What are the expectations for loan growth this year? - Management expects loan growth to be around 6.5%, primarily driven by retail segments, including mortgages and consumer credit [80][85] Question: How much can Yape contribute in the future? - Management anticipates Yape could become the second largest line of business for Credicorp, primarily due to its lending business in retail and SME segments [94][95]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 20.7% for Q2 2025, reflecting strong operating performance and disciplined risk management [13][22] - Net interest income increased by 4.2%, supported by a contraction in interest expenses and a low-cost deposit structure [24][51] - The risk-adjusted net interest margin (NIM) reached a record 5.4%, aided by improved asset quality [14][52] Business Line Data and Key Metrics Changes - Universal banking and insurance and pensions posted very strong results, while microfinance continued to recover [13] - Fee income increased by 8.2%, driven by transactional activity at JAPI and BCP [25] - The innovation portfolio contributed 6.2% of risk-adjusted revenues, on track towards a 10% target for 2026 [13] Market Data and Key Metrics Changes - Peru's GDP is expected to grow by 3.2% in 2025, with domestic demand growing around 4.5% [7][27] - Inflation in Peru has remained below 2% for seven consecutive months, indicating a favorable economic environment [30] - The terms of trade have reached their highest level in 75 years, driven by elevated prices of gold, silver, and copper [27] Company Strategy and Development Direction - The company is focused on building a more agile, balanced, and forward-looking platform, emphasizing digital infrastructure and client engagement [9][16] - The strategy includes advancing digital onboarding, behavioral scoring, and embedding AI across operations to enhance efficiency and decision-making [18][20] - The company aims to transform into a more diversified business model where fee generation and client engagement are as critical as lending [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable resolution regarding the tax case with Sunnab, despite the payment of approximately 1.6 billion soles [11][54] - The company anticipates loan growth to accelerate in the second half of the year, particularly in retail banking and microfinance [56][84] - The long-term sustainable ROE guidance has been revised upwards to around 19.5%, driven by stronger expectations of loan growth dynamics [60] Other Important Information - The company is preparing for its Investor Day on October 9, where it will outline its financial services model of the future [21] - The company reported a significant gain in BCP's investment portfolio, contributing positively to the ROE [22] Q&A Session Summary Question: What is driving the improvement in cost of risk? - Management explained that measures taken last year ensured portfolios are under risk appetite, leading to a low cost of risk. They anticipate higher yielding, higher risk portfolios in the second half of the year [63][66] Question: What is the long-term vision for the physical branch network? - The company has reduced its branch network significantly and plans to continue evolving branches into more educational and commercial hubs rather than transactional centers [70][72] Question: What are the expectations for loan growth this year? - The company expects loan growth to be around 6.5%, particularly driven by retail segments, including mortgages and consumer credit [84] Question: How much can Yape contribute in the future? - Yape is expected to become the second largest line of business for the company, primarily due to its lending business in retail and SME segments [91] Question: What is the expected cost of risk for the second half of the year? - The expectation for the whole year is a cost of risk in the range of 1.8% to 2.2%, with the second half likely closer to 2% [103]