Popular Stock Story

BPOP -  USA Stock  

USD 81.59  0.91  1.13%

Popular Payout Ratio is very stable at the moment as compared to the past year. Popular reported last year Payout Ratio of 0.31. As of 27th of January 2022, Price to Earnings Ratio is likely to grow to 11.45, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop about 664.4 M. Today's short post will recap Popular as your potential position. We will focus on the question of why insiders should continue to be confident in Popular outlook.
Published over three months ago
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Is Popular (NASDAQ:BPOP) outlook positive for February 2022?
Popular has performance score of 3 on a scale of 0 to 100. The company holds a Beta of 1.6113, which implies a somewhat significant risk relative to the market. Let's try to break down what Popular's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Popular will likely underperform. Although it is extremely important to respect Popular current trending patterns, it is better to be realistic regarding the information on equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Popular technical indicators, you can presently evaluate if the expected return of 0.11% will be sustainable into the future. Popular right now holds a risk of 2.03%. Please check Popular semi variance, and the relationship between the treynor ratio and daily balance of power to decide if Popular will be following its historical price patterns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Popular. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Popular

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Popular's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Popular in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Popular. Your research has to be compared to or analyzed against Popular's peers to derive any actionable benefits. When done correctly, Popular's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Popular.

How important is Popular's Liquidity

Popular financial leverage refers to using borrowed capital as a funding source to finance Popular ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Popular financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Popular's total debt and its cash.

How does Popular utilize its cash?

To perform a cash flow analysis of Popular, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Popular is receiving and how much cash it distributes out in a given period. The Popular cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Popular Net Cash Flow from Operations is very stable at the moment as compared to the past year. Popular reported last year Net Cash Flow from Operations of 1.01 Billion

A Deeper look at Popular

Popular currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.22. However, we advise investors to further question Popular expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Popular's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Popular's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Popular Implied Volatility

Popular's implied volatility exposes the market's sentiment of Popular stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Popular's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Popular stock will not fluctuate a lot when Popular's options are near their expiration.

Returns Breakdown

Return on Assets0.009763
Return on Equity0.0942
Return Capital0.0124
Return on Sales0.29

Will Popular decline impact its fundamentals?

The kurtosis is down to 1.05 as of today. Popular currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.22. However, we advise investors to further question Popular expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Popular's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Popular's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Popular Implied Volatility

Popular's implied volatility exposes the market's sentiment of Popular stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Popular's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Popular stock will not fluctuate a lot when Popular's options are near their expiration.

Our Final Takeaway

Although few other entities under the banks—regional industry are still a bit expensive, Popular may offer a potential longer-term growth to insiders. While some insiders may not share our view, we believe it may be a good time to increase your existing holdings in Popular as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Popular.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Popular. Please refer to our Terms of Use for any information regarding our disclosure principles.

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