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Are Investors Undervaluing Industrias Bachoco (IBA) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Industrias Bachoco (IBA - Free Report) . IBA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.19. This compares to its industry's average Forward P/E of 12.38. IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.87, all within the past year.
Investors should also recognize that IBA has a P/B ratio of 0.93. 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 1.95. Over the past 12 months, IBA's P/B has been as high as 1 and as low as 0.78, with a median of 0.89.
Finally, our model also underscores that IBA has a P/CF ratio of 5.67. 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 current P/CF looks attractive when compared to its industry's average P/CF of 7.88. 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.
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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Are Investors Undervaluing Industrias Bachoco (IBA) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Industrias Bachoco (IBA - Free Report) . IBA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.19. This compares to its industry's average Forward P/E of 12.38. IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.87, all within the past year.
Investors should also recognize that IBA has a P/B ratio of 0.93. 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 1.95. Over the past 12 months, IBA's P/B has been as high as 1 and as low as 0.78, with a median of 0.89.
Finally, our model also underscores that IBA has a P/CF ratio of 5.67. 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 current P/CF looks attractive when compared to its industry's average P/CF of 7.88. 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.
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.