Should Value Investors Buy BBVA Banco Frances (BBAR) Stock?

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.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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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 BBVA Banco Frances (BBAR). BBAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.43 right now. For comparison, its industry sports an average P/E of 9.33. Over the last 12 months, BBAR's Forward P/E has been as high as 11.20 and as low as 4.39, with a median of 6.19.We should also highlight that BBAR has a P/B ratio of 1.76. 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 1.82. Over the past 12 months, BBAR's P/B has been as high as 1.82 and as low as 0.18, with a median of 0.80.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BBAR has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.26.Finally, we should also recognize that BBAR has a P/CF ratio of 9.07. 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. BBAR's current P/CF looks attractive when compared to its industry's average P/CF of 14.79. Over the past year, BBAR's P/CF has been as high as 9.35 and as low as 2.05, with a median of 4.58.Investors could also keep in mind Grupo Supervielle (SUPV), an Banks - Foreign stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.Grupo Supervielle also has a P/B ratio of 2.02 compared to its industry's price-to-book ratio of 1.82. Over the past year, its P/B ratio has been as high as 2.16, as low as 0.25, with a median of 0.88.Value investors will likely look at more than just these metrics, but the above data helps show that BBVA Banco Frances and Grupo Supervielle are likely undervalued currently. And when considering the strength of its earnings outlook, BBAR and SUPV sticks out as one of the market's strongest value stocks.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Grupo Supervielle S.A. (SUPV): 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