Banco Latinoamericano de Comercio Exterior S. A (BLX) is drawing attention after recent trading, with the stock closing at $44.99 and posting a 3.2% 1 day return that contrasts with steadier month level moves.

That 3.2% 1 day share price return sits alongside a 2.7% year to date share price return. The 1 year total shareholder return of 23.2% and very large 3 and 5 year total shareholder returns point to momentum that has been building over time.

If BLX's move has you looking beyond a single stock, this could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With BLX trading at $44.99 alongside an indicated discount to some fair value and analyst targets, the key question is simple: is the stock still undervalued here or already pricing in future growth?

Most Popular Narrative: 18.9% Undervalued

With a fair value estimate of $55.50 against the last close at $44.99, the most followed narrative frames BLX as trading at a material discount while still grounded in measured growth and profitability assumptions.

The rollout of a new digital trade finance platform positions Bladex to significantly increase transaction volumes, improve client retention, and expand service offerings to underbanked SMEs, which should drive fee income, boost revenue growth, and improve operational efficiency over the coming 18 months. Structural growth in intra Latin American trade and new regional trade agreements are expected to raise demand for cross border financing, supporting loan book growth, increased fee income from letters of credit, and potential market share gains, positively impacting revenues and earnings.

Want to see what is backing that $55.50 figure? The narrative leans on steady revenue expansion, thick margins, and a future earnings multiple below many peers. The exact mix of growth, profitability and required P/E might surprise you.

Result: Fair Value of $55.50 (UNDERVALUED)

However, this narrative could be knocked off course if large, one off deals like Staatsolie are not repeated, or if regional sovereign risks flare up again.

Build Your Own Banco Latinoamericano de Comercio Exterior S. A Narrative

If you see the numbers differently or want to stress test your own assumptions, you can build a tailored BLX story in just a few minutes, starting with Do it your way.

A great starting point for your Banco Latinoamericano de Comercio Exterior S. A research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If BLX has caught your eye, do not stop there. Broaden your watchlist and let a few focused stock ideas sharpen how you think about opportunity.

• Target potential mispricing by checking out these 869 undervalued stocks based on cash flows to screen for companies whose prices differ from their underlying cash flows.
• Explore technology themes by scanning these 24 AI penny stocks that focus on businesses connected to artificial intelligence.
• Strengthen your income shortlist by reviewing these 12 dividend stocks with yields > 3% for yields above 3% alongside equity exposure.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.