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Should Value Investors Buy Ingredion (INGR) Stock?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Ingredion (INGR - Free Report) is a stock many investors are watching right now. INGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.59, which compares to its industry's average of 19.14. INGR's Forward P/E has been as high as 13.99 and as low as 8.62, with a median of 12.34, all within the past year.
We should also highlight that INGR has a P/B ratio of 1.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. INGR's current P/B looks attractive when compared to its industry's average P/B of 2. INGR's P/B has been as high as 2.40 and as low as 1.48, with a median of 2.02, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. INGR has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.4.
Finally, we should also recognize that INGR has a P/CF ratio of 9.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. INGR's P/CF compares to its industry's average P/CF of 15.18. Over the past 52 weeks, INGR's P/CF has been as high as 10.50 and as low as 6.48, with a median of 9.39.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ingredion is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INGR feels like a great value stock at the moment.
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Should Value Investors Buy Ingredion (INGR) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Ingredion (INGR - Free Report) is a stock many investors are watching right now. INGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.59, which compares to its industry's average of 19.14. INGR's Forward P/E has been as high as 13.99 and as low as 8.62, with a median of 12.34, all within the past year.
We should also highlight that INGR has a P/B ratio of 1.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. INGR's current P/B looks attractive when compared to its industry's average P/B of 2. INGR's P/B has been as high as 2.40 and as low as 1.48, with a median of 2.02, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. INGR has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.4.
Finally, we should also recognize that INGR has a P/CF ratio of 9.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. INGR's P/CF compares to its industry's average P/CF of 15.18. Over the past 52 weeks, INGR's P/CF has been as high as 10.50 and as low as 6.48, with a median of 9.39.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ingredion is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INGR feels like a great value stock at the moment.