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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Associated British Foods (ASBFY). ASBFY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.34, which compares to its industry's average of 15.65. ASBFY's Forward P/E has been as high as 12.63 and as low as 9.40, with a median of 11.29, all within the past year.
Investors should also recognize that ASBFY has a P/B ratio of 1.39. 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 attractive against its industry's average P/B of 1.90. Within the past 52 weeks, ASBFY's P/B has been as high as 1.65 and as low as 1.18, with a median of 1.47.
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 currently hold a Forward P/E ratio of 10.78, and its PEG ratio is 0.98. In comparison, its industry sports average P/E and PEG ratios of 15.65 and 1.18.
Over the last 12 months, INGR's P/E has been as high as 14.44, as low as 10.74, with a median of 12.02, and its PEG ratio has been as high as 1.31, as low as 0.98, with a median of 1.09.
Ingredion also has a P/B ratio of 1.92 compared to its industry's price-to-book ratio of 1.90. Over the past year, its P/B ratio has been as high as 2.54, as low as 1.91, with a median of 2.21.
These are only a few of the key metrics included in Associated British Foods and Ingredion strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ASBFY and INGR look like an impressive value stock at the moment.
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Associated British Foods PLC (ASBFY): Free Stock Analysis Report Ingredion Incorporated (INGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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