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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Ingles (IMKTA). IMKTA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 21.19. Over the past year, IMKTA's Forward P/E has been as high as 12.24 and as low as 7.79, with a median of 9.07.
Investors should also recognize that IMKTA has a P/B ratio of 1.21. The P/B ratio pits a stock's market value against 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 3.60. Over the past 12 months, IMKTA's P/B has been as high as 1.33 and as low as 0.84, with a median of 1.
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. IMKTA has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.28.
Finally, our model also underscores that IMKTA has a P/CF ratio of 3.97. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.73. IMKTA's P/CF has been as high as 4.39 and as low as 2.50, with a median of 3.17, all within the past year.
These are only a few of the key metrics included in Ingles's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IMKTA looks like an impressive value stock at the moment.
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Ingles Markets, Incorporated (IMKTA) : Free Stock Analysis Report
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