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Is Ingevity (NGVT) 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 latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Ingevity (NGVT - Free Report) . NGVT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.75 right now. For comparison, its industry sports an average P/E of 17.05. Over the past year, NGVT's Forward P/E has been as high as 16.06 and as low as 11.08, with a median of 13.66.
Investors should also recognize that NGVT has a P/B ratio of 3.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 7.46. Over the past year, NGVT's P/B has been as high as 5.41 and as low as 3.68, with a median of 4.60.
Finally, investors will want to recognize that NGVT has a P/CF ratio of 11.85. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 32.71. Within the past 12 months, NGVT's P/CF has been as high as 13.25 and as low as 8.78, with a median of 11.33.
These are only a few of the key metrics included in Ingevity's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NGVT looks like an impressive value stock at the moment.