Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics, with Credicorp (BAP) currently recommended due to its favorable Growth Score and top Zacks Rank [2] - Stocks with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have historically outperformed the market [3] Group 2: Earnings Growth - Credicorp has a historical EPS growth rate of 34.2%, with projected EPS growth of 19.3% for the current year, significantly surpassing the industry average of 13.9% [4] Group 3: Asset Utilization - Credicorp's asset utilization ratio (sales-to-total-assets ratio) stands at 0.12, indicating that the company generates $0.12 in sales for every dollar in assets, which is more efficient than the industry average of 0.05 [5] Group 4: Sales Growth - The company is expected to achieve a sales growth rate of 11.6% this year, compared to the industry average of 4%, highlighting its strong sales growth potential [6] Group 5: Earnings Estimate Revisions - Recent upward revisions in current-year earnings estimates for Credicorp indicate a positive trend, with the Zacks Consensus Estimate increasing by 2.5% over the past month [8] Group 6: Overall Assessment - Credicorp has earned a Zacks Rank of 2 and a Growth Score of B, suggesting it is a solid choice for growth investors and a potential outperformer based on the discussed metrics [10]
Here is Why Growth Investors Should Buy Credicorp (BAP) Now