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Should Value Investors Buy Rayonier Advanced Materials (RYAM) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Rayonier Advanced Materials (RYAM - Free Report) . RYAM is currently holding a Zacks Rank of #2 (Buy) and 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RYAM has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.43.
Finally, our model also underscores that RYAM has a P/CF ratio of 2.99. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3.41. 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 3.45.
Veritiv may be another strong Paper and Related Products stock to add to your shortlist. VRTV is a # 2 (Buy) stock with a Value grade of A.
Veritiv is currently trading with a Forward P/E ratio of 6.34 while its PEG ratio sits at 0.41. Both of the company's metrics compare favorably to its industry's average P/E of 7.09 and average PEG ratio of 0.84.
VRTV's price-to-earnings ratio has been as high as 10.23 and as low as 4.69, with a median of 7.37, while its PEG ratio has been as high as 0.62 and as low as 0.30, with a median of 0.48, all within the past year.
Veritiv sports a P/B ratio of 2.13 as well; this compares to its industry's price-to-book ratio of 2.17. In the past 52 weeks, VRTV's P/B has been as high as 3.52, as low as 1.96, with a median of 2.50.
These are only a few of the key metrics included in Rayonier Advanced Materials and Veritiv 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 VRTV look like an impressive value stock at the moment.
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Should Value Investors Buy Rayonier Advanced Materials (RYAM) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Rayonier Advanced Materials (RYAM - Free Report) . RYAM is currently holding a Zacks Rank of #2 (Buy) and 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RYAM has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.43.
Finally, our model also underscores that RYAM has a P/CF ratio of 2.99. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3.41. 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 3.45.
Veritiv may be another strong Paper and Related Products stock to add to your shortlist. VRTV is a # 2 (Buy) stock with a Value grade of A.
Veritiv is currently trading with a Forward P/E ratio of 6.34 while its PEG ratio sits at 0.41. Both of the company's metrics compare favorably to its industry's average P/E of 7.09 and average PEG ratio of 0.84.
VRTV's price-to-earnings ratio has been as high as 10.23 and as low as 4.69, with a median of 7.37, while its PEG ratio has been as high as 0.62 and as low as 0.30, with a median of 0.48, all within the past year.
Veritiv sports a P/B ratio of 2.13 as well; this compares to its industry's price-to-book ratio of 2.17. In the past 52 weeks, VRTV's P/B has been as high as 3.52, as low as 1.96, with a median of 2.50.
These are only a few of the key metrics included in Rayonier Advanced Materials and Veritiv 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 VRTV look like an impressive value stock at the moment.