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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Ingles (IMKTA). IMKTA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.86, which compares to its industry's average of 21.59. Over the past year, IMKTA's Forward P/E has been as high as 10.97 and as low as 7.79, with a median of 9.11.
We should also highlight that IMKTA has a P/B ratio of 1.46. 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. IMKTA's current P/B looks attractive when compared to its industry's average P/B of 3.64. Within the past 52 weeks, IMKTA's P/B has been as high as 1.47 and as low as 0.84, with a median of 1.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IMKTA has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.27.
Finally, we should also recognize that IMKTA has a P/CF ratio of 4.95. 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. IMKTA's P/CF compares to its industry's average P/CF of 11.67. Within the past 12 months, IMKTA's P/CF has been as high as 4.99 and as low as 2.54, with a median of 3.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Ingles is likely undervalued currently. And when considering the strength of its earnings outlook, IMKTA sticks out at as one of the market's strongest value stocks.
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Ingles Markets, Incorporated (IMKTA) : Free Stock Analysis Report
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