Back to top

Image: Bigstock

Should Value Investors Buy Suzano (SUZ) Stock?

Read MoreHide Full Article

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 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 stock to keep an eye on is Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.81, while its industry has an average P/E of 10.26. SUZ's Forward P/E has been as high as 8.72 and as low as -53.51, with a median of 6.04, all within the past year.

Investors should also note that SUZ holds a PEG ratio of 0.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SUZ's PEG compares to its industry's average PEG of 0.19. SUZ's PEG has been as high as 0.09 and as low as 0.01, with a median of 0.08, all within the past year.

Another notable valuation metric for SUZ is its P/B ratio of 1.98. 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 solid versus its industry's average P/B of 2.54. Over the past year, SUZ's P/B has been as high as 2.39 and as low as 1.30, with a median of 1.78.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Suzano S.A. Sponsored ADR (SUZ) - free report >>

Published in