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Are Investors Undervaluing Rayonier Advanced Materials (RYAM) Right Now?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on 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.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.24. This compares to its industry's average P/S of 0.32.

Finally, our model also underscores that RYAM has a P/CF ratio of 3.41. 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 current P/CF looks attractive when compared to its industry's average P/CF of 3.42. Over the past 52 weeks, RYAM's P/CF has been as high as 6.65 and as low as 0.80, with a median of 3.44.

If you're looking for another solid Paper and Related Products value stock, take a look at Suzano (SUZ - Free Report) . SUZ is a # 2 (Buy) stock with a Value score of A.

Suzano is currently trading with a Forward P/E ratio of 4.45 while its PEG ratio sits at 0.64. Both of the company's metrics compare favorably to its industry's average P/E of 7.09 and average PEG ratio of 0.83.

Over the past year, SUZ's P/E has been as high as 8.45, as low as 2.69, with a median of 4.77; its PEG ratio has been as high as 0.84, as low as 0.24, with a median of -3.07 during the same time period.

Suzano sports a P/B ratio of 1.73 as well; this compares to its industry's price-to-book ratio of 2.17. In the past 52 weeks, SUZ's P/B has been as high as 6.21, as low as 1.73, with a median of 2.50.

These are only a few of the key metrics included in Rayonier Advanced Materials and Suzano strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, RYAM and SUZ look like an impressive value stock at the moment.


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