While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Ingredion (INGR). INGR is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.84, which compares to its industry's average of 15.54. INGR's Forward P/E has been as high as 14.44 and as low as 10.84, with a median of 12.16, all within the past year.
Investors should also note that INGR holds a PEG ratio of 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. INGR's PEG compares to its industry's average PEG of 1.18. INGR's PEG has been as high as 1.31 and as low as 0.99, with a median of 1.11, all within the past year.
Finally, our model also underscores that INGR has a P/CF ratio of 9.30. 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. INGR's current P/CF looks attractive when compared to its industry's average P/CF of 14.29. Within the past 12 months, INGR's P/CF has been as high as 11.48 and as low as 9.21, with a median of 10.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Ingredion is likely undervalued currently. And when considering the strength of its earnings outlook, INGR sticks out as one of the market's strongest value stocks.
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Ingredion Incorporated (INGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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