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Is Ingles (IMKTA) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Ingles (IMKTA - Free Report) . IMKTA 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 8.93, while its industry has an average P/E of 20.40. IMKTA's Forward P/E has been as high as 12.24 and as low as 7.79, with a median of 9.26, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IMKTA has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.22.

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


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