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Should Value Investors Buy Ingredion (INGR) Stock?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 a Value grade of A. The stock is trading with a P/E ratio of 11.79, which compares to its industry's average of 16.46. Over the last 12 months, INGR's Forward P/E has been as high as 12.62 and as low as 9.36, with a median of 11.22.
INGR is also sporting a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. INGR's PEG compares to its industry's average PEG of 1.32. Within the past year, INGR's PEG has been as high as 1.11 and as low as 0.85, with a median of 1.02.
Investors should also recognize that INGR has a P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.18. Over the past year, INGR's P/B has been as high as 2.19 and as low as 1.76, with a median of 2.03.
Finally, we should also recognize that INGR has a P/CF ratio of 8.87. 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 P/CF compares to its industry's average P/CF of 16.17. INGR's P/CF has been as high as 9.53 and as low as 7.10, with a median of 8.60, all within the past year.
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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Should Value Investors Buy Ingredion (INGR) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 a Value grade of A. The stock is trading with a P/E ratio of 11.79, which compares to its industry's average of 16.46. Over the last 12 months, INGR's Forward P/E has been as high as 12.62 and as low as 9.36, with a median of 11.22.
INGR is also sporting a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. INGR's PEG compares to its industry's average PEG of 1.32. Within the past year, INGR's PEG has been as high as 1.11 and as low as 0.85, with a median of 1.02.
Investors should also recognize that INGR has a P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.18. Over the past year, INGR's P/B has been as high as 2.19 and as low as 1.76, with a median of 2.03.
Finally, we should also recognize that INGR has a P/CF ratio of 8.87. 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 P/CF compares to its industry's average P/CF of 16.17. INGR's P/CF has been as high as 9.53 and as low as 7.10, with a median of 8.60, all within the past year.
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.