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Should Value Investors Buy Ingredion (INGR) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Ingredion (INGR - Free Report) is a stock many investors are watching right now. INGR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.40, while its industry has an average P/E of 15.81. Over the past year, INGR's Forward P/E has been as high as 13.87 and as low as 10.13, with a median of 11.82.

Investors should also recognize that INGR has a P/B ratio of 1.96. Investors use the P/B ratio to look at a stock's market value versus 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 2.26. Within the past 52 weeks, INGR's P/B has been as high as 2.27 and as low as 1.65, with a median of 2.08.

Finally, our model also underscores that INGR has a P/CF ratio of 8.57. 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 15.53. Within the past 12 months, INGR's P/CF has been as high as 9.99 and as low as 7.78, with a median of 9.26.

These are just a handful of the figures considered in Ingredion's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that INGR is an impressive value stock right now.


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