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Is Rayonier Advanced Materials (RYAM) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Rayonier Advanced Materials (RYAM - Free Report) . RYAM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for RYAM is its P/B ratio of 0.23. 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. This stock's P/B looks attractive against its industry's average P/B of 0.66. Over the past year, RYAM's P/B has been as high as 0.66 and as low as 0.21, with a median of 0.49.
Finally, our model also underscores that RYAM has a P/CF ratio of 0.90. 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. RYAM's P/CF compares to its industry's average P/CF of 1.60. Over the past year, RYAM's P/CF has been as high as 2.11 and as low as 0.80, with a median of 1.63.
Investors could also keep in mind Suzano (SUZ - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Suzano is trading at a forward earnings multiple of 4.46 at the moment, with a PEG ratio of 0.46. This compares to its industry's average P/E of 6.43 and average PEG ratio of 0.55.
Over the last 12 months, SUZ's P/E has been as high as 8.45, as low as 4.13, with a median of 4.79, and its PEG ratio has been as high as 0.84, as low as 0.42, with a median of 0.51.
Furthermore, Suzano holds a P/B ratio of 2.58 and its industry's price-to-book ratio is 0.66. SUZ's P/B has been as high as 6.21, as low as 2.45, with a median of 5.15 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Rayonier Advanced Materials and Suzano are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RYAM and SUZ feels like a great value stock at the moment.
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Is Rayonier Advanced Materials (RYAM) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Rayonier Advanced Materials (RYAM - Free Report) . RYAM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for RYAM is its P/B ratio of 0.23. 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. This stock's P/B looks attractive against its industry's average P/B of 0.66. Over the past year, RYAM's P/B has been as high as 0.66 and as low as 0.21, with a median of 0.49.
Finally, our model also underscores that RYAM has a P/CF ratio of 0.90. 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. RYAM's P/CF compares to its industry's average P/CF of 1.60. Over the past year, RYAM's P/CF has been as high as 2.11 and as low as 0.80, with a median of 1.63.
Investors could also keep in mind Suzano (SUZ - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Suzano is trading at a forward earnings multiple of 4.46 at the moment, with a PEG ratio of 0.46. This compares to its industry's average P/E of 6.43 and average PEG ratio of 0.55.
Over the last 12 months, SUZ's P/E has been as high as 8.45, as low as 4.13, with a median of 4.79, and its PEG ratio has been as high as 0.84, as low as 0.42, with a median of 0.51.
Furthermore, Suzano holds a P/B ratio of 2.58 and its industry's price-to-book ratio is 0.66. SUZ's P/B has been as high as 6.21, as low as 2.45, with a median of 5.15 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Rayonier Advanced Materials and Suzano are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RYAM and SUZ feels like a great value stock at the moment.