Is Banco BBVA (BBAR) Stock Undervalued Right Now?

BBAR

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 BBVA (BBAR - Free Report) . BBAR 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 3.94. This compares to its industry's average Forward P/E of 10.64. Over the past 52 weeks, BBAR's Forward P/E has been as high as 5.55 and as low as 1.36, with a median of 3.49.

We should also highlight that BBAR has a P/B ratio of 0.33. 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. BBAR's current P/B looks attractive when compared to its industry's average P/B of 0.97. BBAR's P/B has been as high as 0.67 and as low as 0.32, with a median of 0.42, over the past year.

These are only a few of the key metrics included in Banco BBVA'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, BBAR looks like an impressive value stock at the moment.

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