BBVA or NRDBY: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Banks - Foreign sector may consider Banco Bilbao (BBVA) or Nordea Bank AB (NRDBY) as potential undervalued stocks, with BBVA appearing to be the superior value option based on various valuation metrics [1][3]. Group 1: Zacks Rank and Earnings Outlook - Both BBVA and NRDBY currently hold a Zacks Rank of 2 (Buy), indicating an improving earnings outlook due to positive analyst estimate revisions [1]. - The Zacks Rank is a tool that emphasizes companies with favorable estimate revision trends, which is beneficial for value investors [1]. Group 2: Valuation Metrics - BBVA has a forward P/E ratio of 6.84, while NRDBY has a forward P/E of 7.60, suggesting BBVA is more attractively priced [2]. - BBVA's PEG ratio is 0.58, compared to NRDBY's PEG ratio of 0.73, indicating BBVA's stock is undervalued relative to its expected earnings growth [2]. - BBVA's P/B ratio is 1.05, while NRDBY's P/B ratio is 1.19, further supporting BBVA's position as the better value option [2]. Group 3: Value Grades - BBVA has been assigned a Value grade of B, while NRDBY has a Value grade of D, highlighting BBVA's stronger valuation metrics [3].