Yahoo Finance Should Value Investors Buy Ingredion (INGR) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Ingredion (INGR). INGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.81 right now. For comparison, its industry sports an average P/E of 18.10. Over the past 52 weeks, INGR's Forward P/E has been as high as 13.97 and as low as 10.60, with a median of 12.23.
Investors should also recognize that INGR has a P/B ratio of 2.13. The P/B is a method of comparing a stock's market value to 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 2.43. Within the past 52 weeks, INGR's P/B has been as high as 2.16 and as low as 1.65, with a median of 1.86.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. INGR has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.03.
Finally, investors will want to recognize that INGR has a P/CF ratio of 9.96. 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 P/CF compares to its industry's average P/CF of 20.35. Over the past 52 weeks, INGR's P/CF has been as high as 20.26 and as low as 7.78, with a median of 8.94.
Nomad Foods Limited (NOMD) may be another strong Food - Miscellaneous stock to add to your shortlist. NOMD is a # 2 (Buy) stock with a Value grade of A.
Nomad Foods Limited sports a P/B ratio of 1.13 as well; this compares to its industry's price-to-book ratio of 2.43. In the past 52 weeks, NOMD's P/B has been as high as 1.69, as low as 0.85, with a median of 1.23.
These are just a handful of the figures considered in Ingredion and Nomad Foods Limited'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 INGR and NOMD is an impressive value stock right now.
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Ingredion Incorporated (INGR) : Free Stock Analysis Report
Nomad Foods Limited (NOMD) : Free Stock Analysis Report
