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Are Investors Undervaluing Ingredion (INGR) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Ingredion (INGR - Free Report) . INGR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.45, while its industry has an average P/E of 16.12. Over the past year, 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 will also notice that INGR has a PEG ratio of 1.04. 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 industry has an average PEG of 1.21 right now. Over the last 12 months, INGR's PEG has been as high as 1.31 and as low as 1.00, with a median of 1.11.

Finally, we should also recognize that INGR has a P/CF ratio of 10.35. 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. INGR's current P/CF looks attractive when compared to its industry's average P/CF of 14.86. INGR's P/CF has been as high as 11.48 and as low as 9.05, with a median of 10.32, all within the past year.

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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