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Is Mercer International (MERC) Stock Undervalued Right Now?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Mercer International (MERC - Free Report) . MERC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.90. This compares to its industry's average Forward P/E of 6.33. Over the past 52 weeks, MERC's Forward P/E has been as high as 8.42 and as low as 3.84, with a median of 5.55.
We should also highlight that MERC has a P/B ratio of 1.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MERC's current P/B looks attractive when compared to its industry's average P/B of 3. Over the past year, MERC's P/B has been as high as 1.52 and as low as 1.04, with a median of 1.23.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MERC has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.48.
Suzano (SUZ - Free Report) may be another strong Paper and Related Products stock to add to your shortlist. SUZ is a # 1 (Strong Buy) stock with a Value grade of A.
Suzano is trading at a forward earnings multiple of 3.95 at the moment, with a PEG ratio of 0.38. This compares to its industry's average P/E of 6.33 and average PEG ratio of 0.57.
SUZ's Forward P/E has been as high as 8.45 and as low as 3.73, with a median of 4.69. During the same time period, its PEG ratio has been as high as 0.84, as low as 0.36, with a median of 0.46.
Additionally, Suzano has a P/B ratio of 2.42 while its industry's price-to-book ratio sits at 3. For SUZ, this valuation metric has been as high as 6.21, as low as 2.24, with a median of 4.69 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mercer International and Suzano are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MERC and SUZ feels like a great value stock at the moment.
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Is Mercer International (MERC) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Mercer International (MERC - Free Report) . MERC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 3.90. This compares to its industry's average Forward P/E of 6.33. Over the past 52 weeks, MERC's Forward P/E has been as high as 8.42 and as low as 3.84, with a median of 5.55.
We should also highlight that MERC has a P/B ratio of 1.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MERC's current P/B looks attractive when compared to its industry's average P/B of 3. Over the past year, MERC's P/B has been as high as 1.52 and as low as 1.04, with a median of 1.23.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MERC has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.48.
Suzano (SUZ - Free Report) may be another strong Paper and Related Products stock to add to your shortlist. SUZ is a # 1 (Strong Buy) stock with a Value grade of A.
Suzano is trading at a forward earnings multiple of 3.95 at the moment, with a PEG ratio of 0.38. This compares to its industry's average P/E of 6.33 and average PEG ratio of 0.57.
SUZ's Forward P/E has been as high as 8.45 and as low as 3.73, with a median of 4.69. During the same time period, its PEG ratio has been as high as 0.84, as low as 0.36, with a median of 0.46.
Additionally, Suzano has a P/B ratio of 2.42 while its industry's price-to-book ratio sits at 3. For SUZ, this valuation metric has been as high as 6.21, as low as 2.24, with a median of 4.69 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mercer International and Suzano are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MERC and SUZ feels like a great value stock at the moment.