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Should Value Investors Buy Clearwater Paper (CLW) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Clearwater Paper (CLW - Free Report) . CLW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also recognize that CLW has a P/B ratio of 1.11. 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 2.71. Over the past 12 months, CLW's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.09.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLW has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.44.
Finally, our model also underscores that CLW has a P/CF ratio of 3.81. 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. CLW's P/CF compares to its industry's average P/CF of 4.49. Over the past year, CLW's P/CF has been as high as 7.42 and as low as 3.48, with a median of 4.69.
Investors could also keep in mind Suzano (SUZ - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Suzano is currently trading with a Forward P/E ratio of 5.08 while its PEG ratio sits at 0.58. Both of the company's metrics compare favorably to its industry's average P/E of 7.84 and average PEG ratio of 0.86.
SUZ's price-to-earnings ratio has been as high as 8.45 and as low as 2.69, with a median of 4.76, while its PEG ratio has been as high as 0.84 and as low as 0.24, with a median of 0.48, all within the past year.
Suzano sports a P/B ratio of 2.25 as well; this compares to its industry's price-to-book ratio of 2.71. In the past 52 weeks, SUZ's P/B has been as high as 6.21, as low as 2.10, with a median of 2.63.
Value investors will likely look at more than just these metrics, but the above data helps show that Clearwater Paper and Suzano are likely undervalued currently. And when considering the strength of its earnings outlook, CLW and SUZ sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Clearwater Paper (CLW) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Clearwater Paper (CLW - Free Report) . CLW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also recognize that CLW has a P/B ratio of 1.11. 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 2.71. Over the past 12 months, CLW's P/B has been as high as 1.43 and as low as 0.82, with a median of 1.09.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CLW has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.44.
Finally, our model also underscores that CLW has a P/CF ratio of 3.81. 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. CLW's P/CF compares to its industry's average P/CF of 4.49. Over the past year, CLW's P/CF has been as high as 7.42 and as low as 3.48, with a median of 4.69.
Investors could also keep in mind Suzano (SUZ - Free Report) , an Paper and Related Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Suzano is currently trading with a Forward P/E ratio of 5.08 while its PEG ratio sits at 0.58. Both of the company's metrics compare favorably to its industry's average P/E of 7.84 and average PEG ratio of 0.86.
SUZ's price-to-earnings ratio has been as high as 8.45 and as low as 2.69, with a median of 4.76, while its PEG ratio has been as high as 0.84 and as low as 0.24, with a median of 0.48, all within the past year.
Suzano sports a P/B ratio of 2.25 as well; this compares to its industry's price-to-book ratio of 2.71. In the past 52 weeks, SUZ's P/B has been as high as 6.21, as low as 2.10, with a median of 2.63.
Value investors will likely look at more than just these metrics, but the above data helps show that Clearwater Paper and Suzano are likely undervalued currently. And when considering the strength of its earnings outlook, CLW and SUZ sticks out as one of the market's strongest value stocks.