Have you been paying attention to shares of Intercorp Financial Services Inc. (IFS)? Shares have been on the move with the stock up 13.2% over the past month. The stock hit a new 52-week high of $36.14 in the previous session. Intercorp Financial Services Inc. has gained 21.6% since the start of the year compared to the 6.3% move for the Zacks Finance sector and the -2.3% return for the Zacks Financial - Miscellaneous Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 8, 2025, Intercorp Financial Services reported EPS of $1.06 versus consensus estimate of $0.89.
Valuation Metrics
While Intercorp Financial Services has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Intercorp Financial Services has a Value Score of A. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 8.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11X. On a trailing cash flow basis, the stock currently trades at 8.9X versus its peer group's average of 10.9X. Additionally, the stock has a PEG ratio of 0.34. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Intercorp Financial Services currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Intercorp Financial Services meets the list of requirements. Thus, it seems as though Intercorp Financial Services shares could have potential in the weeks and months to come.
How Does IFS Stack Up to the Competition?
Shares of IFS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Pagaya Technologies Ltd. (PGY). PGY has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Pagaya Technologies Ltd. beat our consensus estimate by 72.50%, and for the current fiscal year, PGY is expected to post earnings of $2.45 per share on revenue of $1.23 billion.
Shares of Pagaya Technologies Ltd. have gained 51.3% over the past month, and currently trade at a forward P/E of 5.85X and a P/CF of 30.96X.
The Financial - Miscellaneous Services industry may rank in the bottom 57% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for IFS and PGY, even beyond their own solid fundamental situation.
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Intercorp Financial Services Inc. (IFS) : Free Stock Analysis Report
Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
