Yahoo Finance Are Investors Undervaluing Industrias Bachoco (IBA) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Industrias Bachoco (IBA) is a stock many investors are watching right now. IBA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.28 right now. For comparison, its industry sports an average P/E of 16.01. Over the past 52 weeks, IBA's Forward P/E has been as high as 10.83 and as low as 7.49, with a median of 8.63.
We should also highlight that IBA has a P/B ratio of 1.16. 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 1.62. Over the past year, IBA's P/B has been as high as 1.22 and as low as 0.78, with a median of 0.93.
Finally, we should also recognize that IBA has a P/CF ratio of 7.79. 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. IBA's current P/CF looks attractive when compared to its industry's average P/CF of 8.40. IBA's P/CF has been as high as 8.19 and as low as 4.79, with a median of 6.12, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Industrias Bachoco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IBA feels like a great value stock at the moment.
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Industrias Bachoco, S.A. de C.V. (IBA) : Free Stock Analysis Report
