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Is Ingredion (INGR) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Ingredion (INGR - Free Report) is a stock many investors are watching right now. INGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.22, while its industry has an average P/E of 16.63. INGR's Forward P/E has been as high as 13.36 and as low as 9.36, with a median of 11.34, all within the past year.

Investors will also notice that INGR has a PEG ratio of 1.02. 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 industry has an average PEG of 2.07 right now. Over the last 12 months, INGR's PEG has been as high as 1.07 and as low as 0.85, with a median of 0.97.

Investors should also recognize that INGR has a P/B ratio of 2.11. The P/B ratio pits a stock's market value against 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 2.17. Over the past year, INGR's P/B has been as high as 2.27 and as low as 1.76, with a median of 2.08.

Finally, we should also recognize that INGR has a P/CF ratio of 8.67. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. INGR's current P/CF looks attractive when compared to its industry's average P/CF of 16.10. Over the past year, INGR's P/CF has been as high as 9.85 and as low as 7.10, with a median of 9.06.

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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