雅虎香港財經 Are Investors Undervaluing Ingredion (INGR) Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Ingredion (INGR). INGR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.46, which compares to its industry's average of 15.55. Over the past year, INGR's Forward P/E has been as high as 12.25 and as low as 9.36, with a median of 11.22.
Investors should also note that INGR holds 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 PEG compares to its industry's average PEG of 1.25. INGR's PEG has been as high as 1.11 and as low as 0.85, with a median of 1.03, all within the past year.
Investors should also recognize that INGR has a P/B ratio of 2.02. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.07. Within the past 52 weeks, INGR's P/B has been as high as 2.18 and as low as 1.76, with a median of 2.02.
Finally, investors should note that INGR has a P/CF ratio of 8.67. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. INGR's current P/CF looks attractive when compared to its industry's average P/CF of 15.31. INGR's P/CF has been as high as 9.53 and as low as 7.10, with a median of 8.60, all within the past year.
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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Ingredion Incorporated (INGR) : Free Stock Analysis Report
