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Is Suzano (SUZ) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 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 is trading with P/E ratio of 4.64 right now. For comparison, its industry sports an average P/E of 7.27. SUZ's Forward P/E has been as high as 5.94 and as low as 2.69, with a median of 4.70, all within the past year.

SUZ is also sporting 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 0.86. 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 notable valuation metric for SUZ is its P/B ratio of 1.73. 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 solid versus its industry's average P/B of 2.26. Within the past 52 weeks, SUZ's P/B has been as high as 3.19 and as low as 1.68, with a median of 2.42.

Finally, investors will want to recognize that SUZ has a P/CF ratio of 1.84. 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 3.46. Within the past 12 months, SUZ's P/CF has been as high as 3.66 and as low as 1.78, with a median of 2.63.

If you're looking for another solid Paper and Related Products value stock, take a look at Veritiv . VRTV is a # 1 (Strong Buy) stock with a Value score of A.

Veritiv is currently trading with a Forward P/E ratio of 6.50 while its PEG ratio sits at 0.42. Both of the company's metrics compare favorably to its industry's average P/E of 7.27 and average PEG ratio of 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 7.34; 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.

Furthermore, Veritiv holds a P/B ratio of 2.18 and its industry's price-to-book ratio is 2.26. VRTV's P/B has been as high as 3.52, as low as 1.96, with a median of 2.48 over the past 12 months.

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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