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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is Ingredion (INGR - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.76, which compares to its industry's average of 15.89. Over the past 52 weeks, INGR's Forward P/E has been as high as 12.76 and as low as 9.36, with a median of 11.26.

Investors should also note that INGR holds a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. INGR's industry currently sports an average PEG of 1.32. Over the last 12 months, INGR's PEG has been as high as 1.16 and as low as 0.85, with a median of 1.04.

Finally, our model also underscores that INGR has a P/CF ratio of 9.65. 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 15.87. Within the past 12 months, INGR's P/CF has been as high as 9.65 and as low as 7.10, with a median of 8.57.

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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