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Are These Consumer Staples Stocks a Great Value Stocks Right Now?

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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 has a Forward P/E ratio of 13.86. This compares to its industry's average Forward P/E of 19.24. Over the past 52 weeks, INGR's Forward P/E has been as high as 14.47 and as low as 11.54, with a median of 13.47.

We should also highlight that INGR has a P/B ratio of 2.15. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.27. Over the past year, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. INGR has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.57.

Finally, our model also underscores that INGR has a P/CF ratio of 18.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.40. INGR's P/CF has been as high as 27.60 and as low as 8.96, with a median of 17.25, all within the past year.

Another great Food - Miscellaneous stock you could consider is MEDIFAST (MED - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, MEDIFAST holds a P/B ratio of 11.63 and its industry's price-to-book ratio is 2.27. MED's P/B has been as high as 22.34, as low as 11, with a median of 15.61 over the past 12 months.

These are only a few of the key metrics included in Ingredion and MEDIFAST strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, INGR and MED look like an impressive value stock at the moment.


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