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Is Industrias Bachoco (IBA) Stock Undervalued Right Now?

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Industrias Bachoco (IBA). IBA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.17, which compares to its industry's average of 13.70. Over the past 52 weeks, IBA's Forward P/E has been as high as 20.20 and as low as 11.58, with a median of 13.34.

Investors should also recognize that IBA has a P/B ratio of 1.50. 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 solid versus its industry's average P/B of 2.71. IBA's P/B has been as high as 1.86 and as low as 1.33, with a median of 1.56, over the past year.

Finally, our model also underscores that IBA has a P/CF ratio of 8.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IBA's P/CF compares to its industry's average P/CF of 9.89. Within the past 12 months, IBA's P/CF has been as high as 12.26 and as low as 7.50, with a median of 9.15.

These are only a few of the key metrics included in Industrias Bachoco's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IBA looks like an impressive value stock at the moment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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