Is Ingredion (INGR) a Great Value Stock Right Now?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Ingredion (INGR). INGR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.94. This compares to its industry's average Forward P/E of 19.32. Over the past 52 weeks, INGR's Forward P/E has been as high as 14.25 and as low as 10.31, with a median of 11.76.
Investors should also note that INGR holds a PEG ratio of 1.05. 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 2.63. INGR's PEG has been as high as 1.18 and as low as 1.05, with a median of 1.15, all within the past year.
We should also highlight that INGR has a P/B ratio of 2.04. 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. INGR's current P/B looks attractive when compared to its industry's average P/B of 2.20. INGR's P/B has been as high as 2.81 and as low as 1.87, with a median of 2.14, over the past year.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. INGR has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.19.
These are just a handful of the figures considered in Ingredion'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 is an impressive value stock right now.
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