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Is Banco Bilbao Viscaya Argentaria (BBVA) Stock Undervalued Right Now?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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 is trading with P/E ratio of 5.66 right now. For comparison, its industry sports an average P/E of 7.22. Over the past year, BBVA's Forward P/E has been as high as 6.97 and as low as 4.57, with a median of 5.73.

Another valuation metric that we should highlight is BBVA's 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 attractive against its industry's average P/B of 1.48. Within the past 52 weeks, BBVA's P/B has been as high as 0.95 and as low as 0.49, with a median of 0.67.

Finally, our model also underscores that BBVA has a P/CF ratio of 5.36. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BBVA's current P/CF looks attractive when compared to its industry's average P/CF of 13.69. BBVA's P/CF has been as high as 6.22 and as low as 3.17, with a median of 4.43, all within the past year.

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


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