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Should Value Investors Buy Industrias Bachoco (IBA) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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 is trading with a P/E ratio of 9.97, which compares to its industry's average of 17.54. Over the last 12 months, IBA's Forward P/E has been as high as 15.45 and as low as 6.87, with a median of 12.41.

Finally, investors should note that IBA has a P/CF ratio of 4.90. 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. IBA's P/CF compares to its industry's average P/CF of 14.60. Within the past 12 months, IBA's P/CF has been as high as 16.21 and as low as 4.33, with a median of 10.25.

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.


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