Is Ingredion (INGR) a Great Value Stock Right Now?
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 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Ingredion (INGR) 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 is trading with P/E ratio of 13.13 right now. For comparison, its industry sports an average P/E of 17.88. Over the last 12 months, INGR's Forward P/E has been as high as 14.47 and as low as 11.54, with a median of 13.44.
We should also highlight that INGR has a P/B ratio of 2.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. INGR's current P/B looks attractive when compared to its industry's average P/B of 2.13. Over the past 12 months, INGR's P/B has been as high as 2.46 and as low as 1.68, with a median of 2.08.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. INGR has a P/S ratio of 0.94. This compares to its industry's average P/S of 1.43.
Finally, our model also underscores that INGR has a P/CF ratio of 17.10. 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 18.16. Within the past 12 months, INGR's P/CF has been as high as 27.60 and as low as 8.96, with a median of 17.15.
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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