WAL - Popular Is At Risk Of Becoming Too Popular
2024-05-28 08:28:35 ET
Summary
- Popular's stock has spiked 26.9% since my last analysis, outperforming the broader market.
- Recent financial performance shows a decline in net interest income and non-interest income, leading to lower net profits.
- Deposits, loans, and securities have increased, but the overall asset quality and valuation of Popular are concerning.
With a market capitalization of $6.57 billion, Popular ( BPOP ) it's certainly not the largest bank that I have analyzed. But it's also far from the smallest. Back in the middle of November of last year, I ended up rating the company a ‘hold’ to reflect my view at the time that shares would be unlikely to outperform the broader market for the foreseeable future. This conclusion was based on how shares were priced and recent weakness/volatility that the institution had experienced leading up to that point....
Popular Is At Risk Of Becoming Too Popular