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Are Investors Undervaluing Banco Bilbao (BBVA) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Banco Bilbao (BBVA - Free Report) . BBVA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.42, which compares to its industry's average of 8.87. Over the past year, BBVA's Forward P/E has been as high as 12.25 and as low as 7.36, with a median of 10.59.

Another notable valuation metric for BBVA is its P/B ratio of 0.64. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.33. BBVA's P/B has been as high as 1.04 and as low as 0.63, with a median of 0.87, over the past year.

Finally, our model also underscores that BBVA has a P/CF ratio of 10.21. 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 12.29. Over the past 52 weeks, BBVA's P/CF has been as high as 11.57 and as low as 9.62, with a median of 10.24.

These are only a few of the key metrics included in Banco Bilbao's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BBVA looks like an impressive value stock at the moment.


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