Why Popular Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Puerto Rican bank Popular climbed 10% today after its quarterly results easily topped Wall Street expectations.

So what: Popular's fourth-quarter beat was so wide -- EPS of $0.81 versus the consensus of just $0.51 -- that analysts have no choice but to raise their valuation estimates yet again. Additionally, the company's non-performing loans continue to decline while its capital ratios improve, giving investors plenty of good vibes over its financial health going forward.

Now what: Don't let today's pop keep you from looking into the stock. "In 2013, we remain focused on driving value through further progress on all these fronts and continuing to increase our strategic and financial flexibility," said Chairman and CEO Richard Carrion. So while the stock's strong performance of late should give Fools some pause, Popular's still-paltry price to book of 0.6 suggests there's plenty of room to run.

Interested in more info Popular?Add it to your watchlist.

The article Why Popular Shares Popped originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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