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Are Investors Undervaluing Suzano (SUZ) 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now 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 4.58 right now. For comparison, its industry sports an average P/E of 7.36. Over the last 12 months, SUZ's Forward P/E has been as high as 6.91 and as low as 2.69, with a median of 4.89.
We also note that SUZ holds a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SUZ's PEG compares to its industry's average PEG of 0.88. Over the past 52 weeks, SUZ's PEG has been as high as 1 and as low as 0.24, with a median of 0.61.
Investors should also recognize that SUZ has a P/B ratio of 1.67. 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. SUZ's current P/B looks attractive when compared to its industry's average P/B of 2.08. Over the past 12 months, SUZ's P/B has been as high as 2.77 and as low as 1.39, with a median of 2.05.
Finally, investors will want to recognize that SUZ has a P/CF ratio of 2.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SUZ's current P/CF looks attractive when compared to its industry's average P/CF of 4.08. Within the past 12 months, SUZ's P/CF has been as high as 3.66 and as low as 1.76, with a median of 2.50.
Another great Paper and Related Products stock you could consider is Veritiv , which is a # 2 (Buy) stock with a Value Score of A.
Veritiv is currently trading with a Forward P/E ratio of 6.76 while its PEG ratio sits at 0.44. Both of the company's metrics compare favorably to its industry's average P/E of 7.36 and average PEG ratio of 0.88.
VRTV's Forward P/E has been as high as 9.03 and as low as 4.69, with a median of 6.69. During the same time period, its PEG ratio has been as high as 0.58, as low as 0.30, with a median of 0.44.
Furthermore, Veritiv holds a P/B ratio of 2.10 and its industry's price-to-book ratio is 2.08. VRTV's P/B has been as high as 3.05, as low as 1.72, with a median of 2.25 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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Are Investors Undervaluing Suzano (SUZ) Right Now?
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now 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 4.58 right now. For comparison, its industry sports an average P/E of 7.36. Over the last 12 months, SUZ's Forward P/E has been as high as 6.91 and as low as 2.69, with a median of 4.89.
We also note that SUZ holds a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SUZ's PEG compares to its industry's average PEG of 0.88. Over the past 52 weeks, SUZ's PEG has been as high as 1 and as low as 0.24, with a median of 0.61.
Investors should also recognize that SUZ has a P/B ratio of 1.67. 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. SUZ's current P/B looks attractive when compared to its industry's average P/B of 2.08. Over the past 12 months, SUZ's P/B has been as high as 2.77 and as low as 1.39, with a median of 2.05.
Finally, investors will want to recognize that SUZ has a P/CF ratio of 2.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SUZ's current P/CF looks attractive when compared to its industry's average P/CF of 4.08. Within the past 12 months, SUZ's P/CF has been as high as 3.66 and as low as 1.76, with a median of 2.50.
Another great Paper and Related Products stock you could consider is Veritiv , which is a # 2 (Buy) stock with a Value Score of A.
Veritiv is currently trading with a Forward P/E ratio of 6.76 while its PEG ratio sits at 0.44. Both of the company's metrics compare favorably to its industry's average P/E of 7.36 and average PEG ratio of 0.88.
VRTV's Forward P/E has been as high as 9.03 and as low as 4.69, with a median of 6.69. During the same time period, its PEG ratio has been as high as 0.58, as low as 0.30, with a median of 0.44.
Furthermore, Veritiv holds a P/B ratio of 2.10 and its industry's price-to-book ratio is 2.08. VRTV's P/B has been as high as 3.05, as low as 1.72, with a median of 2.25 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.