Ingredion Stock Price Continuation Pattern On Seasonal Play

Ingredion stock price could move over the next 12 weeks if its seasonal pattern holds. Over the next 12 weeks, Ingredion stock price has on average risen by 12% based on the past 19 years of stock performance. Ingredion has risen higher in 17 of those 19 years over the next 12 week period, corresponding to a probability of 89%.

Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. You can read more about the company on their website.

The market for specialty food ingredients is projected to reach a value of $91.2 Billion by 2020, growing at a CAGR of 5.5% from 2015. You can read more about the specialty food ingredients forecast here.

Four brokerages have issued 1-year target prices for Ingredion’s stock. Their predictions range from $125.00 to $155.00. On average, analysts expect Ingredion Incorporated’s share price to reach $141.67 in the next year which represents 14.82% upside from the previous day’s close.

Ingredion Stock Price

Ingredion stock price is in an uptrending continuation pattern. The Effective Volume study shows that large players volume is not as strong as we would like. The Twiggs Money Flow is a bit weaker than we would like too.

We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at $123.51. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $123.22, a stop order could be placed below this zone. Recently a Pocket Pivot signal was observed which is another bullish sign.

Markets in general seem a bit stretched to the upside. Traders may want to wait for a break above the 5 day moving average at $123.75 before taking a long entry:

Ingredion Incorporated Review
2.5

Summary

Profitability

INGR has a Return On Assets of 8.50%. This is among the best returns in the industry. The industry average is 5.04%. INGR outperforms 83% of its industry peers. INGR's Profit Margin of 8.48% is among the best of the industry. INGR does better than the industry average Profit Margin of 6.12%. INGR has a Piotroski-F score of 6. This indicates average health and profitability for INGR. INGR's Return On Equity of 18.20% is worse than the rest of the industry. The industry average Return On Equity is 38.60%. 100% of the industry peers have a better Return On Equity.

Valuation

INGR's Price/Earning Ratio is a bit cheaper than the industry average which is at 18.16. The Price/Earnings Ratio is 18.14, which indicates a fair valuation of INGR. The Forward Price/Earnings Ratio of 14.92 indicates a fair valuation of INGR. With a price book ratio of 3.28, INGR is fairly valued. Compared to an average industry price book ratio of 5.08, INGR is valued inline with its industry peers. The high PEG Ratio, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

Growth

The Earnings Per Share is expected to grow by 11.15% on average over the next 2 years. This is good. The EPS growth is accelerating: in the next 2 years the growth will be better than in the last years. The Earnings Per Share has been growing slightly by 6.49% over the past year. The Earnings Per Share has been growing slightly by 4.16% on average over the past 5 years. INGR shows a small growth in revenue. In the last year, revenue has grown by 2.51%. Revenue has been decreasing by -2.35% on average over the past 5 years.

Health

Health is where INGR is strongest. A Current Ratio of 2.53 indicates that INGR has no problem at all paying its short term obligations. When comparing the Current Ratio to an average industry Current Ratio of 1.02, INGR is better placed than the average industry peer to meet its short term obligations. INGR is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 0.65. When comparing the Debt to Equity Ratio of 0.68 to an average industry Debt to Equity of 1.83, INGR is way less dependent on financing that its industry peers. INGR has an Altman-Z score of 4.12. This indicates that INGR is financially healthy and little risk of bankruptcy at the moment. The Altman-Z score of INGR is much better than the industry average of 2.75. A Quick Ratio of 1.59 indicates that INGR should not have too much problems paying its short term obligations.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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