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Should Value Investors Buy Ingredion (INGR) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Ingredion (INGR - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.18, which compares to its industry's average of 17.97. INGR's Forward P/E has been as high as 13.87 and as low as 9.36, with a median of 11.40, all within the past year.
We also note that INGR holds a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. INGR's PEG compares to its industry's average PEG of 2.19. Over the past 52 weeks, INGR's PEG has been as high as 1.02 and as low as 0.85, with a median of 0.96.
We should also highlight that INGR has a P/B ratio of 2.13. 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. This stock's P/B looks attractive against its industry's average P/B of 2.19. INGR's P/B has been as high as 2.27 and as low as 1.76, with a median of 2.08, over the past year.
Finally, investors should note that INGR has a P/CF ratio of 8.62. 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. INGR's P/CF compares to its industry's average P/CF of 16.14. Within the past 12 months, INGR's P/CF has been as high as 9.89 and as low as 7.10, with a median of 9.14.
These are only a few of the key metrics included in Ingredion's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, INGR looks like an impressive value stock at the moment.
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Should Value Investors Buy Ingredion (INGR) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Ingredion (INGR - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.18, which compares to its industry's average of 17.97. INGR's Forward P/E has been as high as 13.87 and as low as 9.36, with a median of 11.40, all within the past year.
We also note that INGR holds a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. INGR's PEG compares to its industry's average PEG of 2.19. Over the past 52 weeks, INGR's PEG has been as high as 1.02 and as low as 0.85, with a median of 0.96.
We should also highlight that INGR has a P/B ratio of 2.13. 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. This stock's P/B looks attractive against its industry's average P/B of 2.19. INGR's P/B has been as high as 2.27 and as low as 1.76, with a median of 2.08, over the past year.
Finally, investors should note that INGR has a P/CF ratio of 8.62. 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. INGR's P/CF compares to its industry's average P/CF of 16.14. Within the past 12 months, INGR's P/CF has been as high as 9.89 and as low as 7.10, with a median of 9.14.
These are only a few of the key metrics included in Ingredion's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, INGR looks like an impressive value stock at the moment.