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Should Value Investors Buy Suzano (SUZ) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Suzano (SUZ - Free Report) is a stock many investors are watching right now. SUZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.32. This compares to its industry's average Forward P/E of 8.83. 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 5.

We also note that SUZ holds a PEG ratio of 0.77. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SUZ's industry has an average PEG of 1.14 right now. Over the past 52 weeks, SUZ's PEG has been as high as 1 and as low as 0.24, with a median of 0.65.

We should also highlight that SUZ has a P/B ratio of 1.61. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.11. 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 1.93.

Finally, investors will want to recognize that SUZ has a P/CF ratio of 2.23. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.99. SUZ's P/CF has been as high as 3.66 and as low as 1.76, with a median of 2.33, all within the past year.

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.

Veritiv is trading at a forward earnings multiple of 9.02 at the moment, with a PEG ratio of 0.58. This compares to its industry's average P/E of 8.83 and average PEG ratio of 1.14.

VRTV's price-to-earnings ratio has been as high as 9.06 and as low as 4.69, with a median of 6.86, while its PEG ratio has been as high as 0.58 and as low as 0.30, with a median of 0.44, all within the past year.

Furthermore, Veritiv holds a P/B ratio of 2.58 and its industry's price-to-book ratio is 2.11. VRTV's P/B has been as high as 3.05, as low as 1.72, with a median of 2.19 over the past 12 months.

These are just a handful of the figures considered in Suzano and Veritiv's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SUZ and VRTV is an impressive value stock right now.


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