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Is Banco Bilbao (BBVA) a Great Value Stock 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.

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 company value investors might notice is Banco Bilbao (BBVA - Free Report) . BBVA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.75. This compares to its industry's average Forward P/E of 9.37. BBVA's Forward P/E has been as high as 12.58 and as low as 8.06, with a median of 10.94, all within the past year.

We also note that BBVA holds a PEG ratio of 0.83. 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 0.86. Within the past year, BBVA's PEG has been as high as 1.32 and as low as 0.51, with a median of 1.12.

Investors should also recognize that BBVA has a P/B ratio of 0.75. The P/B ratio pits a stock's market value against 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 1.41. Within the past 52 weeks, BBVA's P/B has been as high as 1.04 and as low as 0.69, with a median of 0.88.

Finally, we should also recognize that BBVA has a P/CF ratio of 11.39. 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 P/CF compares to its industry's average P/CF of 13.40. 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 10.20.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Banco Bilbao is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBVA feels like a great value stock at the moment.


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