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Are Investors Undervaluing Ingredion (INGR) Right Now?

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 - Free Report) . INGR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.05, while its industry has an average P/E of 16.91. Over the past 52 weeks, INGR's Forward P/E has been as high as 13.05 and as low as 9.36, with a median of 11.45.

INGR is also sporting a PEG ratio of 1.19. 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 industry has an average PEG of 1.46 right now. Over the past 52 weeks, INGR's PEG has been as high as 1.19 and as low as 0.85, with a median of 1.05.

Finally, we should also recognize that INGR has a P/CF ratio of 10.42. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. INGR's P/CF compares to its industry's average P/CF of 18.22. Over the past 52 weeks, INGR's P/CF has been as high as 10.42 and as low as 7.10, with a median of 8.63.

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 at as one of the market's strongest value stocks.


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