Since June 2020, the S&P 500 has delivered a total return of 102%. But one standout stock has doubled the market - over the past five years, Popular has surged 207% to $108.03 per share. Its momentum hasn’t stopped as it’s also gained 13.2% in the last six months thanks to its solid quarterly results, beating the S&P by 12.2%.
Following the strength, is BPOP a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free.
Why Are We Positive On Popular?
Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ: BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.
1. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Popular’s EPS grew at an astounding 11.8% compounded annual growth rate over the last five years, higher than its 4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
2. Growing TBVPS Reflects Strong Asset Base
We consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation.
Although Popular’s TBVPS increased by a meager 4.4% annually over the last five years, the good news is that its growth has recently accelerated as TBVPS grew at an exceptional 19.2% annual clip over the past two years (from $49.04 to $69.72 per share).
3. Stellar ROE Showcases Lucrative Growth Opportunities
Return on equity (ROE) reveals the profit generated per dollar of shareholder equity, which represents a key source of bank funding. Banks maintaining elevated ROE levels tend to accelerate wealth creation for shareholders via earnings retention, buybacks, and distributions.
Over the last five years, Popular has averaged an ROE of 15.2%, exceptional for a company operating in a sector where the average shakes out around 7.5% and those putting up 15%+ are greatly admired. This shows Popular has a strong competitive moat.
Final Judgment
These are just a few reasons Popular is a high-quality business worth owning, and with its shares outperforming the market lately, the stock trades at 1.2× forward P/B (or $108.03 per share). Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
