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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.46, which compares to its industry's average of 7.54. Over the last 12 months, SUZ's Forward P/E has been as high as 8.45 and as low as 3.73, with a median of 4.75.
We also note that SUZ holds a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SUZ's industry currently sports an average PEG of 0.88. Over the last 12 months, SUZ's PEG has been as high as 0.84 and as low as 0.36, with a median of 0.49.
Another valuation metric that we should highlight is SUZ's P/B ratio of 2.37. The P/B is a method of comparing a stock's market value to 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 2.68. Over the past year, SUZ's P/B has been as high as 6.21 and as low as 2.10, with a median of 2.73.
Finally, investors should note that SUZ has a P/CF ratio of 2.61. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SUZ's P/CF compares to its industry's average P/CF of 8.89. Within the past 12 months, SUZ's P/CF has been as high as 5.90 and as low as 2.19, with a median of 3.05.
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.
Veritiv is trading at a forward earnings multiple of 7.86 at the moment, with a PEG ratio of 0.51. This compares to its industry's average P/E of 7.54 and average PEG ratio of 0.88.
VRTV's price-to-earnings ratio has been as high as 15.44 and as low as 5.25, with a median of 8.11, while its PEG ratio has been as high as 0.62 and as low as 0.31, with a median of 0.49, all within the past year.
Veritiv also has a P/B ratio of 2.72 compared to its industry's price-to-book ratio of 2.68. Over the past year, its P/B ratio has been as high as 3.52, as low as 1.99, with a median of 2.65.
These are just a handful of the figures considered in Suzano and Veritiv's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SUZ and VRTV is an impressive value stock right now.
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Should Value Investors Buy Suzano (SUZ) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.46, which compares to its industry's average of 7.54. Over the last 12 months, SUZ's Forward P/E has been as high as 8.45 and as low as 3.73, with a median of 4.75.
We also note that SUZ holds a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SUZ's industry currently sports an average PEG of 0.88. Over the last 12 months, SUZ's PEG has been as high as 0.84 and as low as 0.36, with a median of 0.49.
Another valuation metric that we should highlight is SUZ's P/B ratio of 2.37. The P/B is a method of comparing a stock's market value to 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 2.68. Over the past year, SUZ's P/B has been as high as 6.21 and as low as 2.10, with a median of 2.73.
Finally, investors should note that SUZ has a P/CF ratio of 2.61. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SUZ's P/CF compares to its industry's average P/CF of 8.89. Within the past 12 months, SUZ's P/CF has been as high as 5.90 and as low as 2.19, with a median of 3.05.
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.
Veritiv is trading at a forward earnings multiple of 7.86 at the moment, with a PEG ratio of 0.51. This compares to its industry's average P/E of 7.54 and average PEG ratio of 0.88.
VRTV's price-to-earnings ratio has been as high as 15.44 and as low as 5.25, with a median of 8.11, while its PEG ratio has been as high as 0.62 and as low as 0.31, with a median of 0.49, all within the past year.
Veritiv also has a P/B ratio of 2.72 compared to its industry's price-to-book ratio of 2.68. Over the past year, its P/B ratio has been as high as 3.52, as low as 1.99, with a median of 2.65.
These are just a handful of the figures considered in Suzano and Veritiv's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SUZ and VRTV is an impressive value stock right now.