Is it time to Buy before this week’s earning report Popular (NASDAQ:BPOP)

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Earnings results for Popular (NASDAQ:BPOP)

Popular, Inc. is expected* to report earnings on 10/28/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.11. The reported EPS for the same quarter last year was $1.7.

Popular last announced its earnings results on July 23rd, 2020. The bank reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.57. The business earned $562.94 million during the quarter, compared to analysts’ expectations of $572.30 million. Popular has generated $6.88 earnings per share over the last year and currently has a price-to-earnings ratio of 7.4. Popular has confirmed that its next quarterly earnings report will be published on Wednesday, October 28th, 2020.

Analyst Opinion on Popular (NASDAQ:BPOP)

4 Wall Street analysts have issued ratings and price targets for Popular in the last 12 months. Their average twelve-month price target is $50.40, predicting that the stock has a possible upside of 28.37%. The high price target for BPOP is $59.00 and the low price target for BPOP is $40.00. There are currently 1 hold rating and 3 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Popular has received a consensus rating of Buy. The company’s average rating score is 2.75, and is based on 3 buy ratings, 1 hold rating, and no sell ratings. According to analysts’ consensus price target of $50.40, Popular has a forecasted upside of 28.4% from its current price of $39.26. Popular has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: Popular (NASDAQ:BPOP)

Popular pays a meaningful dividend of 3.94%, higher than the bottom 25% of all stocks that pay dividends. Popular does not have a long track record of dividend growth. The dividend payout ratio of Popular is 23.26%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Popular will have a dividend payout ratio of 30.08% next year. This indicates that Popular will be able to sustain or increase its dividend.

Insiders buying/selling: Popular (NASDAQ:BPOP)

In the past three months, Popular insiders have not sold or bought any company stock. Only 1.47% of the stock of Popular is held by insiders. 94.70% of the stock of Popular is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Popular (NASDAQ:BPOP

Earnings for Popular are expected to grow by 26.97% in the coming year, from $4.19 to $5.32 per share. The P/E ratio of Popular is 7.44, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.18. The P/E ratio of Popular is 7.44, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 17.77. Popular has a P/B Ratio of 0.64. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

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