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Should Value Investors Buy Ingredion (INGR) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Ingredion (INGR - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.74, while its industry has an average P/E of 16.56. Over the last 12 months, INGR's Forward P/E has been as high as 12.78 and as low as 9.36, with a median of 11.35.
INGR is also sporting a PEG ratio of 1.16. 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 industry currently sports an average PEG of 1.39. 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, investors will want to recognize that INGR has a P/CF ratio of 10.14. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.92. Within the past 12 months, INGR's P/CF has been as high as 10.17 and as low as 7.10, with a median of 8.62.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Nomad Foods Limited (NOMD - Free Report) . NOMD is a # 2 (Buy) stock with a Value score of A.
Nomad Foods Limited sports a P/B ratio of 1.03 as well; this compares to its industry's price-to-book ratio of 2. In the past 52 weeks, NOMD's P/B has been as high as 1.24, as low as 0.82, with a median of 1.03.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ingredion and Nomad Foods Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INGR and NOMD feels like a great value stock at the moment.
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Should Value Investors Buy Ingredion (INGR) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Ingredion (INGR - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.74, while its industry has an average P/E of 16.56. Over the last 12 months, INGR's Forward P/E has been as high as 12.78 and as low as 9.36, with a median of 11.35.
INGR is also sporting a PEG ratio of 1.16. 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 industry currently sports an average PEG of 1.39. 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, investors will want to recognize that INGR has a P/CF ratio of 10.14. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.92. Within the past 12 months, INGR's P/CF has been as high as 10.17 and as low as 7.10, with a median of 8.62.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Nomad Foods Limited (NOMD - Free Report) . NOMD is a # 2 (Buy) stock with a Value score of A.
Nomad Foods Limited sports a P/B ratio of 1.03 as well; this compares to its industry's price-to-book ratio of 2. In the past 52 weeks, NOMD's P/B has been as high as 1.24, as low as 0.82, with a median of 1.03.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ingredion and Nomad Foods Limited are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INGR and NOMD feels like a great value stock at the moment.