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Should Value Investors Buy Suzano (SUZ) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.36 right now. For comparison, its industry sports an average P/E of 10.99. SUZ's Forward P/E has been as high as 8.72 and as low as -53.51, with a median of 6.01, all within the past year.

SUZ is also sporting a PEG ratio of 0.14. 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 0.22. SUZ's PEG has been as high as 0.14 and as low as 0.01, with a median of 0.12, all within the past year.

Finally, investors should note that SUZ has a P/CF ratio of 3.75. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.02. Over the past 52 weeks, SUZ's P/CF has been as high as 39.34 and as low as 3.52, with a median of 7.53.

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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