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Is Ingredion (INGR) Stock Undervalued Right Now?

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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 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.

Ingredion (INGR - Free Report) is a stock many investors are watching right now. INGR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.73, which compares to its industry's average of 15.85. Over the last 12 months, INGR's Forward P/E has been as high as 14.44 and as low as 10.95, with a median of 12.19.

Investors should also note that INGR holds a PEG ratio of 1.07. 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 1.19. Within the past year, INGR's PEG has been as high as 1.31 and as low as 1.00, with a median of 1.11.

Finally, investors should note that INGR has a P/CF ratio of 10.52. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. INGR's P/CF compares to its industry's average P/CF of 14.66. Over the past 52 weeks, INGR's P/CF has been as high as 11.48 and as low as 8.60, with a median of 10.27.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ingredion is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INGR feels like a great value stock at the moment.


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