Are Investors Undervaluing BBVA Banco Frances (BBAR) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One company value investors might notice is BBVA Banco Frances (BBAR). BBAR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.14. This compares to its industry's average Forward P/E of 9.83. BBAR's Forward P/E has been as high as 10.55 and as low as 2.10, with a median of 6.10, all within the past year.Another valuation metric that we should highlight is BBAR's P/B ratio of 1.48. Investors use the P/B ratio to look at a stock's market value versus 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 1.73. BBAR's P/B has been as high as 1.53 and as low as 0.18, with a median of 0.81, over the past year.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BBAR has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.24.Finally, investors should note that BBAR has a P/CF ratio of 5.24. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BBAR's P/CF compares to its industry's average P/CF of 14.12. Over the past 52 weeks, BBAR's P/CF has been as high as 5.41 and as low as 1.36, with a median of 2.94.Banco Do Brasil (BDORY) may be another strong Banks - Foreign stock to add to your shortlist. BDORY is a # 1 (Strong Buy) stock with a Value grade of A.Banco Do Brasil is currently trading with a Forward P/E ratio of 3.70 while its PEG ratio sits at 1.32. Both of the company's metrics compare favorably to its industry's average P/E of 9.83 and average PEG ratio of 0.69.BDORY's Forward P/E has been as high as 5.52 and as low as 1.27, with a median of 4.25. During the same time period, its PEG ratio has been as high as 1.39, as low as 0.25, with a median of 0.94.Banco Do Brasil sports a P/B ratio of 0.66 as well; this compares to its industry's price-to-book ratio of 1.73. In the past 52 weeks, BDORY's P/B has been as high as 1, as low as 0.63, with a median of 0.83.These are only a few of the key metrics included in BBVA Banco Frances and Banco Do Brasil strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BBAR and BDORY look like an impressive value stock at the moment.Just Released: Zacks Top 10 Stocks for 2024Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BBVA Banco Frances S.A. (BBAR): Free Stock Analysis Report Banco Do Brasil SA (BDORY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks