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Should Value Investors Buy Industrias Bachoco (IBA) Stock?
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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), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.20. This compares to its industry's average Forward P/E of 12.01. Over the past 52 weeks, IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.79.
Another notable valuation metric for IBA is its P/B ratio of 0.92. 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 1.88. 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, investors should note that IBA has a P/CF ratio of 5.66. 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. IBA's current P/CF looks attractive when compared to its industry's average P/CF of 7.59. Over the past year, IBA's P/CF has been as high as 6.89 and as low as 4.79, with a median of 5.80.
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?
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), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.20. This compares to its industry's average Forward P/E of 12.01. Over the past 52 weeks, IBA's Forward P/E has been as high as 10.48 and as low as 7.68, with a median of 8.79.
Another notable valuation metric for IBA is its P/B ratio of 0.92. 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 1.88. 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, investors should note that IBA has a P/CF ratio of 5.66. 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. IBA's current P/CF looks attractive when compared to its industry's average P/CF of 7.59. Over the past year, IBA's P/CF has been as high as 6.89 and as low as 4.79, with a median of 5.80.
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.