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Is Industrias Bachoco (IBA) Stock Undervalued Right Now?
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Industrias Bachoco (IBA - Free Report) . IBA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.15, which compares to its industry's average of 13.49. Over the past year, IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.93.
Investors should also recognize that IBA has a P/B ratio of 0.92. 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 1.98. Within the past 52 weeks, IBA's P/B has been as high as 1 and as low as 0.78, with a median of 0.89.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IBA has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.54.
Finally, investors should note that IBA has a P/CF ratio of 5.65. 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 8.75. IBA's P/CF has been as high as 6.89 and as low as 4.79, with a median of 5.88, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Industrias Bachoco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IBA feels like a great value stock at the moment.
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Is Industrias Bachoco (IBA) Stock Undervalued 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Industrias Bachoco (IBA - Free Report) . IBA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.15, which compares to its industry's average of 13.49. Over the past year, IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.93.
Investors should also recognize that IBA has a P/B ratio of 0.92. 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 1.98. Within the past 52 weeks, IBA's P/B has been as high as 1 and as low as 0.78, with a median of 0.89.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IBA has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.54.
Finally, investors should note that IBA has a P/CF ratio of 5.65. 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 8.75. IBA's P/CF has been as high as 6.89 and as low as 4.79, with a median of 5.88, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Industrias Bachoco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IBA feels like a great value stock at the moment.