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Is Banco Bilbao Viscaya Argentaria (BBVA) a Great Value Stock Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Banco Bilbao Viscaya Argentaria (BBVA - Free Report) . BBVA 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 4.64. This compares to its industry's average Forward P/E of 6.67. Over the last 12 months, BBVA's Forward P/E has been as high as 9.96 and as low as 4.57, with a median of 6.87.

Another valuation metric that we should highlight is BBVA's P/B ratio of 0.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BBVA's current P/B looks attractive when compared to its industry's average P/B of 1.19. Over the past 12 months, BBVA's P/B has been as high as 0.81 and as low as 0.49, with a median of 0.63.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBVA has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.19.

Finally, investors should note that BBVA has a P/CF ratio of 3.53. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BBVA's current P/CF looks attractive when compared to its industry's average P/CF of 10.97. Within the past 12 months, BBVA's P/CF has been as high as 7.38 and as low as 3.17, with a median of 5.21.

These are only a few of the key metrics included in Banco Bilbao Viscaya Argentaria'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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