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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Industrias Bachoco (IBA - Free Report) . IBA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.50. This compares to its industry's average Forward P/E of 15.52. IBA's Forward P/E has been as high as 15.45 and as low as 10.21, with a median of 12.76, all within the past year.
Investors should also recognize that IBA has a P/B ratio of 1.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.92. Within the past 52 weeks, IBA's P/B has been as high as 1.55 and as low as 0.96, with a median of 1.24.
Finally, investors should note that IBA has a P/CF ratio of 13.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.67. Within the past 12 months, IBA's P/CF has been as high as 16.21 and as low as 6.87, with a median of 9.60.
These are just a handful of the figures considered in Industrias Bachoco'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 IBA is an impressive value stock right now.