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Are Investors Undervaluing Rayonier Advanced Materials (RYAM) Right Now?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Rayonier Advanced Materials (RYAM - Free Report) . RYAM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that RYAM has a P/B ratio of 0.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RYAM's current P/B looks attractive when compared to its industry's average P/B of 0.83. Within the past 52 weeks, RYAM's P/B has been as high as 0.66 and as low as 0.21, with a median of 0.47.
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. RYAM has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.51.
Finally, investors will want to recognize that RYAM has a P/CF ratio of 5.66. 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 10.35. RYAM's P/CF has been as high as 5.66 and as low as 0.81, with a median of 1.72, all within the past year.
Veritiv may be another strong Paper and Related Products stock to add to your shortlist. VRTV is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Veritiv currently holds a Forward P/E ratio of 7.48, and its PEG ratio is 0.49. In comparison, its industry sports average P/E and PEG ratios of 7.06 and 0.57.
Over the last 12 months, VRTV's P/E has been as high as 19.54, as low as 6.09, with a median of 9.88, and its PEG ratio has been as high as 0.62, as low as 0.40, with a median of 0.51.
Veritiv also has a P/B ratio of 3.02 compared to its industry's price-to-book ratio of 0.83. Over the past year, its P/B ratio has been as high as 4.10, as low as 2.04, with a median of 2.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Rayonier Advanced Materials and Veritiv are likely undervalued currently. And when considering the strength of its earnings outlook, RYAM and VRTV sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Rayonier Advanced Materials (RYAM) Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Rayonier Advanced Materials (RYAM - Free Report) . RYAM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that RYAM has a P/B ratio of 0.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. RYAM's current P/B looks attractive when compared to its industry's average P/B of 0.83. Within the past 52 weeks, RYAM's P/B has been as high as 0.66 and as low as 0.21, with a median of 0.47.
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. RYAM has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.51.
Finally, investors will want to recognize that RYAM has a P/CF ratio of 5.66. 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 10.35. RYAM's P/CF has been as high as 5.66 and as low as 0.81, with a median of 1.72, all within the past year.
Veritiv may be another strong Paper and Related Products stock to add to your shortlist. VRTV is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Veritiv currently holds a Forward P/E ratio of 7.48, and its PEG ratio is 0.49. In comparison, its industry sports average P/E and PEG ratios of 7.06 and 0.57.
Over the last 12 months, VRTV's P/E has been as high as 19.54, as low as 6.09, with a median of 9.88, and its PEG ratio has been as high as 0.62, as low as 0.40, with a median of 0.51.
Veritiv also has a P/B ratio of 3.02 compared to its industry's price-to-book ratio of 0.83. Over the past year, its P/B ratio has been as high as 4.10, as low as 2.04, with a median of 2.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Rayonier Advanced Materials and Veritiv are likely undervalued currently. And when considering the strength of its earnings outlook, RYAM and VRTV sticks out as one of the market's strongest value stocks.