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Is Now The Time To Look At Buying Ingredion Incorporated (NYSE:INGR)?

While Ingredion Incorporated (NYSE:INGR) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$118 and falling to the lows of US$106. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Ingredion's current trading price of US$115 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Ingredion’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Ingredion

What's The Opportunity In Ingredion?

Good news, investors! Ingredion is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $182.61, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Ingredion’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What kind of growth will Ingredion generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -2.2% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Ingredion. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although INGR is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to INGR, or whether diversifying into another stock may be a better move for your total risk and return.

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Are you a potential investor? If you’ve been keeping an eye on INGR for a while, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Ingredion.

If you are no longer interested in Ingredion, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.