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Should Value Investors Buy BBVA (BBAR) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 BBVA (BBAR - Free Report) . BBAR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that BBAR has a P/B ratio of 0.84. 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 solid versus its industry's average P/B of 1.27. Within the past 52 weeks, BBAR's P/B has been as high as 2.28 and as low as 0.72, with a median of 1.65.

Finally, we should also recognize that BBAR has a P/CF ratio of 5.42. 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. BBAR's P/CF compares to its industry's average P/CF of 14.51. BBAR's P/CF has been as high as 185.93 and as low as 4.65, with a median of 14.56, all within the past year.

These are just a handful of the figures considered in BBVA'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 BBAR is an impressive value stock right now.


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