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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Ingredion (INGR). INGR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.97, while its industry has an average P/E of 15.88. Over the past 52 weeks, INGR's Forward P/E has been as high as 14.44 and as low as 10.74, with a median of 12.09.
INGR is also sporting a PEG ratio of 1.00. 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 1.20. Over the past 52 weeks, INGR's PEG has been as high as 1.31 and as low as 0.98, with a median of 1.10.
If you're looking for another solid Food - Miscellaneous value stock, take a look at Post Holdings (POST). POST is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.
Additionally, Post Holdings has a P/B ratio of 1.56 while its industry's price-to-book ratio sits at 1.93. For POST, this valuation metric has been as high as 1.75, as low as 1.42, with a median of 1.64 over the past year.
These are just a handful of the figures considered in Ingredion and Post Holdings'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 and POST is an impressive value stock right now.
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Ingredion Incorporated (INGR): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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