Is Banco Bilbao Viscaya Argentaria (BBVA) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Banco Bilbao Viscaya Argentaria (BBVA). BBVA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.32. This compares to its industry's average Forward P/E of 7.80. Over the past 52 weeks, BBVA's Forward P/E has been as high as 6.97 and as low as 4.57, with a median of 5.75.
Investors should also recognize that BBVA has a P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.49. Within the past 52 weeks, BBVA's P/B has been as high as 0.95 and as low as 0.49, with a median of 0.79.
Finally, we should also recognize that BBVA has a P/CF ratio of 6.05. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BBVA's P/CF compares to its industry's average P/CF of 13.10. Over the past year, BBVA's P/CF has been as high as 6.22 and as low as 3.17, with a median of 5.18.
If you're looking for another solid Banks - Foreign value stock, take a look at Societe Generale Group (SCGLY). SCGLY is a # 2 (Buy) stock with a Value score of A.
Shares of Societe Generale Group are currently trading at a forward earnings multiple of 4.89 and a PEG ratio of 1.99 compared to its industry's P/E and PEG ratios of 7.80 and 0.69, respectively.
SCGLY's price-to-earnings ratio has been as high as 6.51 and as low as 4.28, with a median of 5.17, while its PEG ratio has been as high as 2.06 and as low as 1.67, with a median of 1.80, all within the past year.
Societe Generale Group also has a P/B ratio of 0.27 compared to its industry's price-to-book ratio of 1.49. Over the past year, its P/B ratio has been as high as 0.34, as low as 0.22, with a median of 0.26.
These are just a handful of the figures considered in Banco Bilbao Viscaya Argentaria and Societe Generale Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BBVA and SCGLY is an impressive value stock right now.
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Banco Bilbao Viscaya Argentaria S.A. (BBVA) : Free Stock Analysis Report
Societe Generale Group (SCGLY) : Free Stock Analysis Report
