BBVA Shares Soar 30% Year-to-Date on Strong Earnings

Bank Bilbao Vizcaya's (BBVA) share price surged to its highest level since March 2025 today, with an intraday gain of 0.42%.

The strategy of buying BBVA shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.77% annualized return. The maximum drawdown of -6.53% occurred in 2023, highlighting the importance of considering risk management. While the strategy showed resilience in volatile markets, the overall performance was modest, suggesting that investors may need to revisit their approach or consider other strategies to enhance returns.

BBVA's first-quarter earnings report, released on May 9, 2025, revealed a net income of $2.84 billion. This robust financial performance is likely to bolster investor confidence and positively influence the stock price. The strong earnings reflect BBVA's strategic initiatives and operational efficiency, which have been key drivers of its market performance.

BBVA's attractive dividend yield of 5.47% continues to draw the attention of income-focused investors. This high yield not only provides a steady income stream but also serves as a buffer against market volatility, potentially stabilizing the stock price. The dividend policy underscores BBVA's commitment to shareholder value and financial stability.

In 2024, BBVA reported a significant increase in revenue, up by 16.23% compared to the previous year. This revenue growth is a testament to the bank's successful market strategies and expanding customer base. The increased revenue is expected to drive positive investor sentiment, further supporting the stock price.

BBVA's year-to-date performance has been impressive, with a 30% increase in stock value. This strong market performance is attributed to the bank's consistent earnings growth and positive investor sentiment. The robust performance indicates that BBVA is well-positioned to capitalize on market opportunities and maintain its upward trajectory.

On April 28, 2025, a power outage led to a temporary decline in BBVA customers' card spending. This event may have had a short-term impact on the stock price, but the overall market sentiment remains positive. The bank's resilience in the face of such challenges highlights its operational robustness and ability to navigate unforeseen circumstances.

The recent approval by the CNMC of BBVA's union with Banco Sabadell is a strategic move that could enhance BBVA's market position. The union includes new account benefits for vulnerable customers, demonstrating BBVA's commitment to social responsibility and customer welfare. This strategic alliance is expected to have long-term implications for BBVA's market performance and stock price.