Core Viewpoint - Intercorp Financial Services Inc. (IFS) has shown strong stock performance, with a 9.3% increase over the past month and a 28.9% rise since the beginning of the year, outperforming both the Zacks Finance sector and the Zacks Financial - Miscellaneous Services industry [1][2]. Performance Metrics - The stock reached a new 52-week high of $38.3 and has consistently beaten earnings estimates, reporting an EPS of $1.06 against a consensus estimate of $0.89 in its last earnings report [1][2]. - The company has a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7][8]. Valuation Metrics - Intercorp Financial Services has a Value Score of A, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of A [5][6]. - The stock trades at 8.7X current fiscal year EPS estimates, below the peer industry average of 11.6X, and has a PEG ratio of 0.35, indicating strong value potential [6]. Competitive Landscape - Pagaya Technologies Ltd. (PGY) is a notable peer, holding a Zacks Rank of 1 (Strong Buy) and showing strong earnings performance, with a 72.5% beat on consensus estimates last quarter [9][10]. - Despite the Financial - Miscellaneous Services industry ranking in the bottom 57% of all industries, both IFS and PGY exhibit positive growth prospects [11][12].

Core Viewpoint - Intercorp Financial Services Inc. (IFS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Stock Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating system is beneficial for investors as it focuses on objective earnings estimate revisions rather than subjective analyst ratings [3][10]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [5][7]. - Rising earnings estimates for Intercorp Financial Services suggest an improvement in the company's underlying business, which could lead to higher stock prices [6][11]. Performance of Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Intercorp Financial Services to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns [10][11]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Intercorp Financial Services is expected to earn $4.34 per share, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.6% over the past three months [9].

Core Viewpoint - The comparison between Intercorp Financial Services Inc. (IFS) and American Express (AXP) indicates that IFS presents a better value opportunity for investors at this time [1]. Group 1: Zacks Rank and Earnings Outlook - IFS has a Zacks Rank of 2 (Buy), while AXP has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for IFS [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, indicating that IFS is likely experiencing a more significant improvement in its earnings outlook compared to AXP [3]. Group 2: Valuation Metrics - IFS has a forward P/E ratio of 8.51, significantly lower than AXP's forward P/E of 19.60, indicating that IFS may be undervalued relative to AXP [5]. - The PEG ratio for IFS is 0.35, while AXP's PEG ratio is 1.45, further suggesting that IFS is a more attractive investment based on expected earnings growth [5]. - IFS has a P/B ratio of 1.43 compared to AXP's P/B of 6.69, reinforcing the notion that IFS is undervalued [6]. - These valuation metrics contribute to IFS earning a Value grade of A, while AXP has a Value grade of C, highlighting IFS as the superior value option [6].

Company Performance - Intercorp Financial Services Inc. (IFS) shares have increased by 3% over the past month and reached a new 52-week high of $37.36, with a year-to-date gain of 26% compared to the Zacks Finance sector's 5.8% and the Financial - Miscellaneous Services industry's -4.3% return [1] - The company has consistently exceeded earnings expectations, reporting EPS of $1.06 against a consensus estimate of $0.89 in its last earnings report on May 8, 2025 [2] Valuation Metrics - IFS trades at 8.5X current fiscal year EPS estimates, below the peer industry average of 11.2X, and at 9.3X trailing cash flow compared to the peer group's average of 11.1X [6] - The stock has a PEG ratio of 0.35, indicating it is not among the top stocks from a value perspective [6] Zacks Rank and Style Scores - IFS holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [7] - The company has a Value Score of A, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of A [5][8] Industry Comparison - Pagaya Technologies Ltd. (PGY) is a notable peer with a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, beating consensus estimates by 72.50% last quarter [9][10] - Despite the Financial - Miscellaneous Services industry ranking in the bottom 55% of all industries, both IFS and PGY exhibit positive fundamental conditions and potential tailwinds [11]

Core Viewpoint - Intercorp Financial Services Inc. (IFS) is currently positioned as a more attractive investment option compared to American Express (AXP) for value investors, based on earnings estimate revisions and valuation metrics [1][3][7]. Valuation Metrics - IFS has a forward P/E ratio of 8.35, significantly lower than AXP's forward P/E of 19.35, indicating that IFS may be undervalued [5]. - The PEG ratio for IFS is 0.34, while AXP's PEG ratio stands at 1.43, suggesting that IFS has better growth potential relative to its valuation [5]. - IFS's P/B ratio is 1.40, compared to AXP's P/B of 6.60, further highlighting IFS's relative undervaluation [6]. Analyst Outlook - IFS holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while AXP has a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3][7]. - The stronger estimate revision activity for IFS supports a more optimistic analyst outlook compared to AXP [7].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Intercorp Financial Services Inc. (IFS) - IFS currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Performance Metrics - Over the past week, IFS shares increased by 3.84%, outperforming the Zacks Financial - Miscellaneous Services industry, which rose by 2.09% [6] - In the last month, IFS shares rose by 13.23%, while the industry saw a 15.1% increase [6] - Over the past quarter, IFS shares have risen by 12.45%, and over the last year, they have increased by 53.4%, compared to the S&P 500's performance of -2.26% and 13.85% respectively [7] Trading Volume - IFS has an average 20-day trading volume of 221,476 shares, which is a useful indicator for assessing price movements [8] Earnings Outlook - In the past two months, one earnings estimate for IFS has increased, while none have decreased, raising the consensus estimate from $4.23 to $4.29 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Given the strong performance metrics and positive earnings outlook, IFS is identified as a promising momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12]

Company Performance - Intercorp Financial Services Inc. (IFS) shares have increased by 13.2% over the past month and reached a new 52-week high of $36.14 [1] - The stock has gained 21.6% since the beginning of the year, outperforming the Zacks Finance sector's 6.3% increase and the Zacks Financial - Miscellaneous Services industry's decline of 2.3% [1] Earnings and Valuation - IFS has a strong record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters, with the latest EPS reported at $1.06 against a consensus of $0.89 [2] - The stock trades at 8.3 times current fiscal year EPS estimates, below the peer industry average of 11 times, and at 8.9 times trailing cash flow compared to the peer group's average of 10.9 times [6] Style Scores and Zacks Rank - IFS has a Value Score of A, Growth Score of A, and Momentum Score of A, resulting in a combined VGM Score of A [5] - The stock currently holds a Zacks Rank of 2 (Buy), indicating rising earnings estimates [7][8] Industry Comparison - Pagaya Technologies Ltd. (PGY) is a notable peer with a Zacks Rank of 1 (Strong Buy) and strong earnings performance, having beaten consensus estimates by 72.5% [9][10] - Despite the Financial - Miscellaneous Services industry ranking in the bottom 57% of all industries, both IFS and PGY show potential for growth [11]

Core Viewpoint - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that a solid trend can lead to profitable opportunities if supported by strong fundamentals and positive earnings revisions [1][2]. Group 1: Stock Performance - Intercorp Financial Services Inc. (IFS) has shown a solid price increase of 9.9% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also increased by 13.9% in the last four weeks, suggesting that the upward trend is still intact [5]. - IFS is currently trading at 96.8% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - IFS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like IFS that have the fundamental strength to maintain their upward trends [3]. - The article suggests that there are several other stocks passing through this screen, providing additional investment opportunities [8].

Group 1 - Intercorp Financial Services (IFS) is highlighted as a stock with a buy rank and strong momentum characteristics, currently holding a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Intercorp Financial Services' current year earnings has increased by 1.4% over the last 60 days [1] - The company's shares have gained 9.9% over the last three months, contrasting with the S&P 500's decline of 3.7% [2] Group 2 - Intercorp Financial Services possesses a Momentum Score of A, indicating strong performance in momentum metrics [2]

Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck. Analyst's Disclosure: I/we have a beneficial long position in the shares of IFS either through stock ownership, options, or othe ...