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Should Value Investors Buy Industrias Bachoco (IBA) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Industrias Bachoco (IBA - Free Report) . IBA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.87, while its industry has an average P/E of 17.54. IBA's Forward P/E has been as high as 13.62 and as low as 6.87, with a median of 10.57, all within the past year.
Investors should also recognize that IBA has a P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IBA's current P/B looks attractive when compared to its industry's average P/B of 2.55. Within the past 52 weeks, IBA's P/B has been as high as 1.30 and as low as 0.68, with a median of 0.99.
Finally, investors will want to recognize that IBA has a P/CF ratio of 8.30. 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. IBA's P/CF compares to its industry's average P/CF of 13.38. Over the past year, IBA's P/CF has been as high as 10.54 and as low as 4.33, with a median of 7.64.
Value investors will likely look at more than just these metrics, but the above data helps show that Industrias Bachoco is likely undervalued currently. And when considering the strength of its earnings outlook, IBA sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Industrias Bachoco (IBA) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Industrias Bachoco (IBA - Free Report) . IBA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.87, while its industry has an average P/E of 17.54. IBA's Forward P/E has been as high as 13.62 and as low as 6.87, with a median of 10.57, all within the past year.
Investors should also recognize that IBA has a P/B ratio of 0.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IBA's current P/B looks attractive when compared to its industry's average P/B of 2.55. Within the past 52 weeks, IBA's P/B has been as high as 1.30 and as low as 0.68, with a median of 0.99.
Finally, investors will want to recognize that IBA has a P/CF ratio of 8.30. 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. IBA's P/CF compares to its industry's average P/CF of 13.38. Over the past year, IBA's P/CF has been as high as 10.54 and as low as 4.33, with a median of 7.64.
Value investors will likely look at more than just these metrics, but the above data helps show that Industrias Bachoco is likely undervalued currently. And when considering the strength of its earnings outlook, IBA sticks out at as one of the market's strongest value stocks.