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Are Investors Undervaluing Suzano (SUZ) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Suzano (SUZ - Free Report) is a stock many investors are watching right now. SUZ is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.36, which compares to its industry's average of 12.82. 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.

Investors will also notice that SUZ has a PEG ratio of 0.14. 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 industry has an average PEG of 0.34 right now. 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 metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SUZ's P/CF compares to its industry's average P/CF of 7.09. 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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