Should Value Investors Buy Suzano (SUZ) Stock?

SUZ

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Suzano (SUZ - Free Report) . SUZ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 1.24. This compares to its industry's average Forward P/E of 3.16. SUZ's Forward P/E has been as high as 7.81 and as low as 1.21, with a median of 6.46, all within the past year.

Another notable valuation metric for SUZ is its P/B ratio of 1.70. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. SUZ's current P/B looks attractive when compared to its industry's average P/B of 2.31. Over the past 12 months, SUZ's P/B has been as high as 1.90 and as low as 1.41, with a median of 1.66.

Finally, investors will want to recognize that SUZ has a P/CF ratio of 3.50. 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. SUZ's current P/CF looks attractive when compared to its industry's average P/CF of 6.39. SUZ's P/CF has been as high as 3.91 and as low as 1.95, with a median of 2.79, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Suzano is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SUZ feels like a great value stock at the moment.

Only $1 to See All Zacks' Buys and Sells

We're not kidding.

Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.

Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.

See Stocks Now >>