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Are Investors Undervaluing Suzano (SUZ) Right Now?

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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Suzano (SUZ - Free Report) is a stock many investors are watching right now. SUZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.85. This compares to its industry's average Forward P/E of 11.24. Over the past year, SUZ's Forward P/E has been as high as 7.39 and as low as 2.69, with a median of 5.33.

Investors should also note that SUZ holds a PEG ratio of 0.99. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SUZ's industry currently sports an average PEG of 1.63. Over the past 52 weeks, SUZ's PEG has been as high as 1.06 and as low as 0.24, with a median of 0.75.

Another notable valuation metric for SUZ is its P/B ratio of 1.64. 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 2.15. SUZ's P/B has been as high as 2.65 and as low as 1.39, with a median of 1.70, over the past year.

Finally, investors will want to recognize that SUZ has a P/CF ratio of 2.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SUZ's current P/CF looks attractive when compared to its industry's average P/CF of 5.06. Over the past 52 weeks, SUZ's P/CF has been as high as 3 and as low as 1.76, with a median of 2.22.

These are only a few of the key metrics included in Suzano's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SUZ looks like an impressive value stock at the moment.


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