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

Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a favored strategy that seeks to find undervalued companies through fundamental analysis and traditional valuation metrics [2] Company Analysis: BBVA Banco Frances (BBAR) - BBAR has a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong investment potential [4] - The current P/E ratio for BBAR is 8.43, which is lower than the industry average of 9.33. Over the past 12 months, BBAR's Forward P/E has ranged from 4.39 to 11.20, with a median of 6.19 [4] - BBAR's P/B ratio is 1.76, which is competitive compared to the industry average of 1.82. The P/B ratio has fluctuated between 0.18 and 1.82 over the past year, with a median of 0.80 [5] - The P/S ratio for BBAR is 0.69, significantly lower than the industry average of 1.26, indicating potential undervaluation [6] - BBAR's P/CF ratio stands at 9.07, which is attractive compared to the industry's average of 14.79. The P/CF ratio has varied from 2.05 to 9.35 over the past year, with a median of 4.58 [7] Company Analysis: Grupo Supervielle (SUPV) - Grupo Supervielle also holds a Zacks Rank of 1 (Strong Buy) and an A grade for Value, suggesting it is another strong investment option [8] - The P/B ratio for Grupo Supervielle is 2.02, which is above the industry average of 1.82. Its P/B ratio has ranged from 0.25 to 2.16 over the past year, with a median of 0.88 [8] Conclusion - Both BBVA Banco Frances and Grupo Supervielle are identified as likely undervalued stocks, with strong earnings outlooks making them standout options for value investors [9]