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Are Investors Undervaluing Ingredion (INGR) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Ingredion (INGR - Free Report) . INGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.02. This compares to its industry's average Forward P/E of 16.62. Over the last 12 months, INGR's Forward P/E has been as high as 13.87 and as low as 9.36, with a median of 11.48.
INGR is also sporting a PEG ratio of 1. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. INGR's PEG compares to its industry's average PEG of 2.02. Within the past year, INGR's PEG has been as high as 1 and as low as 0.85, with a median of 0.95.
Another notable valuation metric for INGR is its P/B ratio of 2.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. INGR's current P/B looks attractive when compared to its industry's average P/B of 2.17. Over the past year, INGR's P/B has been as high as 2.27 and as low as 1.76, with a median of 2.07.
Finally, our model also underscores that INGR has a P/CF ratio of 8.47. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.03. INGR's P/CF has been as high as 9.94 and as low as 7.10, with a median of 9.19, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ingredion is likely undervalued currently. And when considering the strength of its earnings outlook, INGR sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Ingredion (INGR) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Ingredion (INGR - Free Report) . INGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.02. This compares to its industry's average Forward P/E of 16.62. Over the last 12 months, INGR's Forward P/E has been as high as 13.87 and as low as 9.36, with a median of 11.48.
INGR is also sporting a PEG ratio of 1. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. INGR's PEG compares to its industry's average PEG of 2.02. Within the past year, INGR's PEG has been as high as 1 and as low as 0.85, with a median of 0.95.
Another notable valuation metric for INGR is its P/B ratio of 2.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. INGR's current P/B looks attractive when compared to its industry's average P/B of 2.17. Over the past year, INGR's P/B has been as high as 2.27 and as low as 1.76, with a median of 2.07.
Finally, our model also underscores that INGR has a P/CF ratio of 8.47. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.03. INGR's P/CF has been as high as 9.94 and as low as 7.10, with a median of 9.19, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ingredion is likely undervalued currently. And when considering the strength of its earnings outlook, INGR sticks out at as one of the market's strongest value stocks.