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Should Value Investors Buy Banco Bilbao Viscaya Argentaria (BBVA) Stock?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 - Free Report) . BBVA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.30, which compares to its industry's average of 8.12. Over the last 12 months, BBVA's Forward P/E has been as high as 7.02 and as low as 5.11, with a median of 6.12.
Investors should also note that BBVA holds a PEG ratio of 0.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BBVA's PEG compares to its industry's average PEG of 0.67. Over the last 12 months, BBVA's PEG has been as high as 1.23 and as low as 0.38, with a median of 0.47.
We should also highlight that BBVA has a P/B ratio of 0.93. The P/B ratio is used to compare a stock's market value with 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 1.53. Over the past year, BBVA's P/B has been as high as 0.97 and as low as 0.73, with a median of 0.83.
Finally, investors should note that BBVA has a P/CF ratio of 6.23. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.20. Within the past 12 months, BBVA's P/CF has been as high as 6.49 and as low as 4.98, with a median of 5.54.
These are just a handful of the figures considered in Banco Bilbao Viscaya Argentaria'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 is an impressive value stock right now.
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Should Value Investors Buy Banco Bilbao Viscaya Argentaria (BBVA) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 - Free Report) . BBVA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.30, which compares to its industry's average of 8.12. Over the last 12 months, BBVA's Forward P/E has been as high as 7.02 and as low as 5.11, with a median of 6.12.
Investors should also note that BBVA holds a PEG ratio of 0.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BBVA's PEG compares to its industry's average PEG of 0.67. Over the last 12 months, BBVA's PEG has been as high as 1.23 and as low as 0.38, with a median of 0.47.
We should also highlight that BBVA has a P/B ratio of 0.93. The P/B ratio is used to compare a stock's market value with 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 1.53. Over the past year, BBVA's P/B has been as high as 0.97 and as low as 0.73, with a median of 0.83.
Finally, investors should note that BBVA has a P/CF ratio of 6.23. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.20. Within the past 12 months, BBVA's P/CF has been as high as 6.49 and as low as 4.98, with a median of 5.54.
These are just a handful of the figures considered in Banco Bilbao Viscaya Argentaria'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 is an impressive value stock right now.