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Are Investors Undervaluing Banco Bilbao Viscaya Argentaria (BBVA) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 has a Forward P/E ratio of 6.39. This compares to its industry's average Forward P/E of 8.11. Over the last 12 months, BBVA's Forward P/E has been as high as 7.02 and as low as 5.11, with a median of 6.03.
Investors will also notice that BBVA has a PEG ratio of 0.44. 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 0.64. Over the past 52 weeks, BBVA's PEG has been as high as 1.23 and as low as 0.38, with a median of 0.48.
Another notable valuation metric for BBVA is its P/B ratio of 0.94. 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 1.57. Over the past 12 months, BBVA's P/B has been as high as 0.97 and as low as 0.71, with a median of 0.82.
Finally, investors will want to recognize that BBVA has a P/CF ratio of 6.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBVA's current P/CF looks attractive when compared to its industry's average P/CF of 11.98. BBVA's P/CF has been as high as 6.49 and as low as 4.27, with a median of 5.49, all within the past year.
Commerzbank (CRZBY - Free Report) may be another strong Banks - Foreign stock to add to your shortlist. CRZBY is a # 2 (Buy) stock with a Value grade of A.
Additionally, Commerzbank has a P/B ratio of 0.40 while its industry's price-to-book ratio sits at 1.57. For CRZBY, this valuation metric has been as high as 0.49, as low as 0.33, with a median of 0.40 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Banco Bilbao Viscaya Argentaria and Commerzbank are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBVA and CRZBY feels like a great value stock at the moment.
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Are Investors Undervaluing Banco Bilbao Viscaya Argentaria (BBVA) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 has a Forward P/E ratio of 6.39. This compares to its industry's average Forward P/E of 8.11. Over the last 12 months, BBVA's Forward P/E has been as high as 7.02 and as low as 5.11, with a median of 6.03.
Investors will also notice that BBVA has a PEG ratio of 0.44. 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 0.64. Over the past 52 weeks, BBVA's PEG has been as high as 1.23 and as low as 0.38, with a median of 0.48.
Another notable valuation metric for BBVA is its P/B ratio of 0.94. 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 1.57. Over the past 12 months, BBVA's P/B has been as high as 0.97 and as low as 0.71, with a median of 0.82.
Finally, investors will want to recognize that BBVA has a P/CF ratio of 6.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BBVA's current P/CF looks attractive when compared to its industry's average P/CF of 11.98. BBVA's P/CF has been as high as 6.49 and as low as 4.27, with a median of 5.49, all within the past year.
Commerzbank (CRZBY - Free Report) may be another strong Banks - Foreign stock to add to your shortlist. CRZBY is a # 2 (Buy) stock with a Value grade of A.
Additionally, Commerzbank has a P/B ratio of 0.40 while its industry's price-to-book ratio sits at 1.57. For CRZBY, this valuation metric has been as high as 0.49, as low as 0.33, with a median of 0.40 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Banco Bilbao Viscaya Argentaria and Commerzbank are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BBVA and CRZBY feels like a great value stock at the moment.