Should Value Investors Buy Banco Bilbao Viscaya Argentaria (BBVA) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice 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 holds a P/E ratio of 5.82, while its industry has an average P/E of 7.38. BBVA's Forward P/E has been as high as 6.97 and as low as 4.57, with a median of 5.64, all within the past year.
Investors should also recognize that BBVA has a P/B ratio of 0.86. 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 solid versus its industry's average P/B of 1.41. 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 0.73.
Finally, we should also recognize that BBVA has a P/CF ratio of 5.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.13. Over the past 52 weeks, BBVA's P/CF has been as high as 6.22 and as low as 3.17, with a median of 4.43.
Value investors will likely look at more than just these metrics, but the above data helps show that Banco Bilbao Viscaya Argentaria is likely undervalued currently. And when considering the strength of its earnings outlook, BBVA sticks out at as one of the market's strongest value stocks.
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Banco Bilbao Viscaya Argentaria S.A. (BBVA) : Free Stock Analysis Report
