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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 BRF (BRFS). BRFS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.98 right now. For comparison, its industry sports an average P/E of 16.07. Over the past 52 weeks, BRFS's Forward P/E has been as high as 16.22 and as low as 7.25, with a median of 10.05.
We should also highlight that BRFS has a P/B ratio of 1.34. 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. This stock's P/B looks solid versus its industry's average P/B of 1.82. Over the past 12 months, BRFS's P/B has been as high as 1.62 and as low as 1.09, with a median of 1.36.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Ingredion (INGR). INGR is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of Ingredion are currently trading at a forward earnings multiple of 11.76 and a PEG ratio of 1.07 compared to its industry's P/E and PEG ratios of 16.07 and 1.21, respectively.
INGR's price-to-earnings ratio has been as high as 14.44 and as low as 10.95, with a median of 12.19, while its PEG ratio has been as high as 1.31 and as low as 1.00, with a median of 1.11, all within the past year.
Ingredion sports a P/B ratio of 2.19 as well; this compares to its industry's price-to-book ratio of 1.82. In the past 52 weeks, INGR's P/B has been as high as 2.54, as low as 1.98, with a median of 2.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BRF and Ingredion are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BRFS and INGR feels like a great value stock at the moment.
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BRF S.A. (BRFS): Free Stock Analysis Report Ingredion Incorporated (INGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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