We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Industrias Bachoco (IBA) Stock?
Read MoreHide Full Article
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company value investors might notice is Industrias Bachoco (IBA - Free Report) . IBA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.18 right now. For comparison, its industry sports an average P/E of 13.39. 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 8.43.
Another notable valuation metric for IBA is its P/B ratio of 0.94. 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 1.58. IBA's P/B has been as high as 1.01 and as low as 0.78, with a median of 0.90, over the past year.
Finally, investors should note that IBA has a P/CF ratio of 5.72. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.99. 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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company value investors might notice is Industrias Bachoco (IBA - Free Report) . IBA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.18 right now. For comparison, its industry sports an average P/E of 13.39. 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 8.43.
Another notable valuation metric for IBA is its P/B ratio of 0.94. 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 1.58. IBA's P/B has been as high as 1.01 and as low as 0.78, with a median of 0.90, over the past year.
Finally, investors should note that IBA has a P/CF ratio of 5.72. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.99. 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.
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.