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Is Suzano (SUZ) Stock Undervalued 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.25, while its industry has an average P/E of 10.78. Over the past year, SUZ's Forward P/E has been as high as 7.71 and as low as 4.32, with a median of 6.10.

SUZ is also sporting a PEG ratio of 0.69. 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 1.13. SUZ's PEG has been as high as 1.08 and as low as 0.55, with a median of 0.82, all within the past year.

We should also highlight that SUZ has a P/B ratio of 1.77. 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 2.16. SUZ's P/B has been as high as 1.96 and as low as 1.39, with a median of 1.63, over the past year.

Finally, investors should note that SUZ has a P/CF ratio of 3.63. 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. SUZ's current P/CF looks attractive when compared to its industry's average P/CF of 6.32. Within the past 12 months, SUZ's P/CF has been as high as 3.63 and as low as 1.78, with a median of 2.47.

Value investors will likely look at more than just these metrics, but the above data helps show that Suzano is likely undervalued currently. And when considering the strength of its earnings outlook, SUZ sticks out at as one of the market's strongest value stocks.


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