Is Ingredion (INGR) Stock Undervalued Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Ingredion (INGR) is a stock many investors are watching right now. INGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.50. This compares to its industry's average Forward P/E of 16.92. Over the past year, INGR's Forward P/E has been as high as 13.87 and as low as 10.50, with a median of 11.94.
Another valuation metric that we should highlight is INGR's P/B ratio of 2.04. 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 stock's P/B looks solid versus its industry's average P/B of 2.42. Within the past 52 weeks, INGR's P/B has been as high as 2.27 and as low as 1.65, with a median of 2.08.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.8. This compares to its industry's average P/S of 0.81.
Finally, we should also recognize that INGR has a P/CF ratio of 8.82. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.32. Over the past 52 weeks, INGR's P/CF has been as high as 9.99 and as low as 7.78, with a median of 9.31.
If you're looking for another solid Food - Miscellaneous value stock, take a look at SunOpta (STKL). STKL is a # 2 (Buy) stock with a Value score of A.
SunOpta also has a P/B ratio of 2.11 compared to its industry's price-to-book ratio of 2.42. Over the past year, its P/B ratio has been as high as 4.12, as low as 2.11, with a median of 2.89.
These are only a few of the key metrics included in Ingredion and SunOpta strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, INGR and STKL look like an impressive value stock at the moment.
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Ingredion Incorporated (INGR) : Free Stock Analysis Report
SunOpta, Inc. (STKL) : Free Stock Analysis Report
