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Are Investors Undervaluing D S SMITH (DITHF) Right Now?

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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.

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.

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 D S SMITH (DITHF - Free Report) . DITHF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.99. This compares to its industry's average Forward P/E of 11.02. Over the last 12 months, DITHF's Forward P/E has been as high as 8.84 and as low as 7.61, with a median of 8.08.

Another notable valuation metric for DITHF is its P/B ratio of 0.91. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.21. Over the past year, DITHF's P/B has been as high as 1.17 and as low as 0.86, with a median of 0.95.

Suzano (SUZ - Free Report) may be another strong Paper and Related Products stock to add to your shortlist. SUZ is a # 1 (Strong Buy) stock with a Value grade of A.

Suzano is currently trading with a Forward P/E ratio of 4.77 while its PEG ratio sits at 0.69. Both of the company's metrics compare favorably to its industry's average P/E of 11.02 and average PEG ratio of 1.60.

Over the last 12 months, SUZ's P/E has been as high as 7.49, as low as 2.69, with a median of 5.33, and its PEG ratio has been as high as 1.08, as low as 0.24, with a median of 0.77.

Additionally, Suzano has a P/B ratio of 1.77 while its industry's price-to-book ratio sits at 2.21. For SUZ, this valuation metric has been as high as 2.35, as low as 1.39, with a median of 1.70 over the past year.

These are only a few of the key metrics included in D S SMITH and Suzano strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DITHF and SUZ look like an impressive value stock at the moment.


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