What Happened?

A number of stocks fell in the afternoon session after hotter-than-expected inflation data and rising concerns over credit risk rattled investors. 

January's Producer Price Index (PPI), a measure of wholesale inflation, rose 0.5% against expectations of 0.3%, with the core component jumping 0.8%. This report fuels the narrative of "sticky inflation," suggesting the Federal Reserve may have limited room to cut interest rates. 

Compounding these worries are growing anxieties in the credit markets. According to a Bank of America strategist, problem loans are an increasing concern that could pressure lenders. Investors are reassessing credit risk, particularly in private-credit and leveraged-loan markets, weighing on the valuations of banks sensitive to the economic cycle.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company Valley National Bank (NASDAQ: VLY) fell 6.2%. Is now the time to buy Valley National Bank? Access our full analysis report here, it’s free.
• Regional Banks company Seacoast Banking (NASDAQ: SBCF) fell 5.6%. Is now the time to buy Seacoast Banking? Access our full analysis report here, it’s free.
• Regional Banks company Renasant (NYSE: RNST) fell 5.8%. Is now the time to buy Renasant? Access our full analysis report here, it’s free.
• Regional Banks company Popular (NASDAQ: BPOP) fell 6.2%. Is now the time to buy Popular? Access our full analysis report here, it’s free.
• Regional Banks company Pathward Financial (NASDAQ: CASH) fell 5.7%. Is now the time to buy Pathward Financial? Access our full analysis report here, it’s free.

Zooming In On Popular (BPOP)

Popular’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock gained 5.8% on the news that it reported strong fourth-quarter 2025 financial results that surpassed analyst expectations for profit while meeting revenue forecasts. 

The company announced quarterly earnings of $3.53 per share, which was 16.2% higher than analysts had predicted, while revenue grew 9% year-on-year to $823.8 million. A key driver of the positive results was net interest income, a core measure of bank profitability, which came in at $657.6 million, beating Wall Street's estimates. Furthermore, the company's tangible book value per share, a premier metric for valuing banks, grew 24.8% over the last year to $82.65. Overall, the solid earnings beat and outperformance in key banking metrics reassured investors about the company's financial health.

Popular is up 7.3% since the beginning of the year, and at $135.17 per share, it is trading close to its 52-week high of $147.56 from February 2026. Investors who bought $1,000 worth of Popular’s shares 5 years ago would now be looking at an investment worth $1,957.

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