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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Suzano (SUZ - Free Report) is a stock many investors are watching right now. SUZ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.62, while its industry has an average P/E of 10.43. SUZ's Forward P/E has been as high as 7.71 and as low as 4.32, with a median of 5.93, all within the past year.

Investors should also note that SUZ holds a PEG ratio of 0.69. 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 1.09. Over the past 52 weeks, SUZ's PEG has been as high as 1.08 and as low as 0.55, with a median of 0.80.

Investors should also recognize that SUZ has a P/B ratio of 1.69. The P/B ratio pits a stock's market value against 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 2.16. Over the past 12 months, SUZ's P/B has been as high as 1.97 and as low as 1.39, with a median of 1.65.

Finally, investors will want to recognize that SUZ has a P/CF ratio of 2.86. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.20. Over the past year, SUZ's P/CF has been as high as 3.01 and as low as 1.76, with a median of 2.37.

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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