- Popular (BPOP) is showing strong technical momentum, recently hitting new 10-year highs.
- BPOP has a 100% “Buy” rating from Barchart and a Trend Seeker “Buy” signal.
- Shares are up 28% over the past year.
- The stock also pays a dividend yielding 2.4%.
Today’s Featured Stock
Valued at $8.6 billion, Popular (BPOP) is a diversified, publicly owned bank holding company. The corporation's principal subsidiary, Banco Popular de Puerto Rico, has one of the largest retail franchises in Puerto Rico, operating numerous branches and automated teller machines. The Bank also operates branches in the U.S. Virgin Islands, the British Virgin Islands, and New York.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. BPOP checks those boxes. Since the Trend Seeker signaled a buy on July 17, the stock gained 10.63%.
BPOP Price vs. Daily Moving Averages:
Barchart Technical Indicators for Popular
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Popular hit a new 10-year high of $127.09 in intraday trading on Sept. 4.
- Popular has a Weighted Alpha of +41.77.
- BPOP has an 100% “Buy” opinion from Barchart.
- The stock gained 28.18% over the past year.
- BPOP has its Trend Seeker “Buy” signal intact.
- Popular is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 13 new highs and gained 10.43% in the last month.
- Relative Strength Index (RSI) is at 79.81%.
- There’s a technical support level around $125.71.
Don’t Forget the Fundamentals
- $8.6 billion market capitalization.
- 12.23x trailing price-earnings ratio.
- 2.4% dividend yield.
- Revenue is expected to grow by 7.70% this year and another 6.66% next year.
- Earnings are projected to increase by 25.95% this year and an additional 15.53% next year.
Analyst and Investor Sentiment on Popular
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are split on Popular.
- The Wall Street analysts tracked by Barchart have issued 5 “Strong Buy,” 2 “Moderate Buy,” and 2 “Hold” opinions on the stock.
- Their price targets are between $116-$155.
- Value Line gives the stock an “Above Average” rating with a price target of $128.
- CFRA’s MarketScope Advisor rates it a “Buy.”
- Morningstar thinks the stock is 16% overvalued with a fair value of $109.
- 1,168 investors following the stock on Motley Fool think the stock will beat the market while 303 think it won’t.
- 5,700 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”
The Bottom Line on Popular
Popular is a bank in a growing area, currently has momentum, and is hitting new highs. With its location it would seem its product line will be in high demand.
I caution that BPOP is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
