Should Value Investors Buy Ingles (IMKTA) Stock?
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 company to watch right now is Ingles (IMKTA). IMKTA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 22.64. Over the past 52 weeks, IMKTA's Forward P/E has been as high as 11.05 and as low as 7.79, with a median of 9.15.
We should also highlight that IMKTA has a P/B ratio of 1.33. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.64. IMKTA's P/B has been as high as 1.49 and as low as 0.84, with a median of 1.02, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IMKTA has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.26.
Finally, investors should note that IMKTA has a P/CF ratio of 4.51. 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. IMKTA's P/CF compares to its industry's average P/CF of 11.67. IMKTA's P/CF has been as high as 5.04 and as low as 2.68, with a median of 3.31, all within the past year.
These are only a few of the key metrics included in Ingles'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, IMKTA looks like an impressive value stock at the moment.
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Ingles Markets, Incorporated (IMKTA) : Free Stock Analysis Report
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