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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Ingredion (INGR - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.73, while its industry has an average P/E of 15.28. Over the past 52 weeks, INGR's Forward P/E has been as high as 13.87 and as low as 9.36, with a median of 11.61.
Investors will also notice that INGR has a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. INGR's PEG compares to its industry's average PEG of 1.86. INGR's PEG has been as high as 0.98 and as low as 0.85, with a median of 0.90, all within the past year.
Investors should also recognize that INGR has a P/B ratio of 2.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.12. INGR's P/B has been as high as 2.27 and as low as 1.76, with a median of 2.08, over the past year.
Finally, investors should note that INGR has a P/CF ratio of 8.23. 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 current P/CF looks attractive when compared to its industry's average P/CF of 15.63. Within the past 12 months, INGR's P/CF has been as high as 9.99 and as low as 7.10, with a median of 9.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Ingredion is likely undervalued currently. And when considering the strength of its earnings outlook, INGR sticks out at as one of the market's strongest value stocks.
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Is Ingredion (INGR) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Ingredion (INGR - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.73, while its industry has an average P/E of 15.28. Over the past 52 weeks, INGR's Forward P/E has been as high as 13.87 and as low as 9.36, with a median of 11.61.
Investors will also notice that INGR has a PEG ratio of 0.98. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. INGR's PEG compares to its industry's average PEG of 1.86. INGR's PEG has been as high as 0.98 and as low as 0.85, with a median of 0.90, all within the past year.
Investors should also recognize that INGR has a P/B ratio of 2.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.12. INGR's P/B has been as high as 2.27 and as low as 1.76, with a median of 2.08, over the past year.
Finally, investors should note that INGR has a P/CF ratio of 8.23. 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 current P/CF looks attractive when compared to its industry's average P/CF of 15.63. Within the past 12 months, INGR's P/CF has been as high as 9.99 and as low as 7.10, with a median of 9.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Ingredion is likely undervalued currently. And when considering the strength of its earnings outlook, INGR sticks out at as one of the market's strongest value stocks.