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Is Banco Bilbao Viscaya Argentaria (BBVA) Stock Undervalued 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 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 company value investors might notice is Banco Bilbao Viscaya Argentaria (BBVA - Free Report) . BBVA is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.54, while its industry has an average P/E of 9.81. Over the past year, BBVA's Forward P/E has been as high as 8.58 and as low as 5.63, with a median of 7.04.

Investors should also recognize that BBVA has a P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to 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 2.19. Over the past year, BBVA's P/B has been as high as 1.56 and as low as 0.85, with a median of 1.04.

Finally, our model also underscores that BBVA has a P/CF ratio of 7.61. 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 P/CF compares to its industry's average P/CF of 16.31. Within the past 12 months, BBVA's P/CF has been as high as 7.64 and as low as 4.60, with a median of 5.62.

Value investors will likely look at more than just these metrics, but the above data helps show that Banco Bilbao Viscaya Argentaria is likely undervalued currently. And when considering the strength of its earnings outlook, BBVA sticks out as one of the market's strongest value stocks.


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