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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 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 Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 4.62, while its industry has an average P/E of 7.31. Over the past 52 weeks, SUZ's Forward P/E has been as high as 5.94 and as low as 2.69, 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 PEG compares to its industry's average PEG of 0.86. Over the last 12 months, SUZ's PEG has been as high as 0.73 and as low as 0.24, with a median of 0.49.
Another valuation metric that we should highlight is SUZ's P/B ratio of 1.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.23. SUZ's P/B has been as high as 5.80 and as low as 1.68, with a median of 2.48, over the past year.
Finally, our model also underscores that SUZ has a P/CF ratio of 1.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SUZ's P/CF compares to its industry's average P/CF of 3.51. Over the past year, SUZ's P/CF has been as high as 5.48 and as low as 1.78, with a median of 2.69.
Investors could also keep in mind Veritiv , an Paper and Related Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Veritiv currently holds a Forward P/E ratio of 6.90, and its PEG ratio is 0.44. In comparison, its industry sports average P/E and PEG ratios of 7.31 and 0.86.
Over the past year, VRTV's P/E has been as high as 10.23, as low as 4.69, with a median of 7.44; its PEG ratio has been as high as 0.62, as low as 0.30, with a median of 0.49 during the same time period.
Additionally, Veritiv has a P/B ratio of 2.32 while its industry's price-to-book ratio sits at 2.23. For VRTV, this valuation metric has been as high as 3.52, as low as 1.96, with a median of 2.53 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Suzano and Veritiv are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SUZ and VRTV feels like a great value stock at the moment.
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Should Value Investors Buy Suzano (SUZ) 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 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 Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 4.62, while its industry has an average P/E of 7.31. Over the past 52 weeks, SUZ's Forward P/E has been as high as 5.94 and as low as 2.69, 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 PEG compares to its industry's average PEG of 0.86. Over the last 12 months, SUZ's PEG has been as high as 0.73 and as low as 0.24, with a median of 0.49.
Another valuation metric that we should highlight is SUZ's P/B ratio of 1.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.23. SUZ's P/B has been as high as 5.80 and as low as 1.68, with a median of 2.48, over the past year.
Finally, our model also underscores that SUZ has a P/CF ratio of 1.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SUZ's P/CF compares to its industry's average P/CF of 3.51. Over the past year, SUZ's P/CF has been as high as 5.48 and as low as 1.78, with a median of 2.69.
Investors could also keep in mind Veritiv , an Paper and Related Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Veritiv currently holds a Forward P/E ratio of 6.90, and its PEG ratio is 0.44. In comparison, its industry sports average P/E and PEG ratios of 7.31 and 0.86.
Over the past year, VRTV's P/E has been as high as 10.23, as low as 4.69, with a median of 7.44; its PEG ratio has been as high as 0.62, as low as 0.30, with a median of 0.49 during the same time period.
Additionally, Veritiv has a P/B ratio of 2.32 while its industry's price-to-book ratio sits at 2.23. For VRTV, this valuation metric has been as high as 3.52, as low as 1.96, with a median of 2.53 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Suzano and Veritiv are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SUZ and VRTV feels like a great value stock at the moment.