Is Industrias Bachoco (IBA) a Great Value Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Industrias Bachoco (IBA). IBA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.60, which compares to its industry's average of 15.88. Over the last 12 months, IBA's Forward P/E has been as high as 15.45 and as low as 10.21, with a median of 12.88.
Investors should also recognize that IBA has a P/B ratio of 1.37. 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 attractive against its industry's average P/B of 3. IBA's P/B has been as high as 1.54 and as low as 0.96, with a median of 1.24, over 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.