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Is Suzano (SUZ) Stock Undervalued 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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.68 right now. For comparison, its industry sports an average P/E of 12.30. Over the past year, SUZ's Forward P/E has been as high as 8.72 and as low as -53.51, with a median of 6.01.

We also note that SUZ holds a PEG ratio of 0.13. 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 has an average PEG of 0.26 right now. Over the last 12 months, SUZ's PEG has been as high as 0.13 and as low as 0.01, with a median of 0.09.

Another notable valuation metric for SUZ is its P/B ratio of 2.02. The P/B is a method of comparing a stock's market value to 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 2.06. SUZ's P/B has been as high as 2.39 and as low as 1.56, with a median of 1.85, over the past year.

Finally, investors should note that SUZ has a P/CF ratio of 8.77. 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 P/CF compares to its industry's average P/CF of 13.96. Over the past year, SUZ's P/CF has been as high as 39.34 and as low as 5.24, with a median of 7.90.

These are just a handful of the figures considered in Suzano's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SUZ is an impressive value stock right now.


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