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Is Fibria Celulose (FBR) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Fibria Celulose . FBR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.27 right now. For comparison, its industry sports an average P/E of 9.31. FBR's Forward P/E has been as high as 17.91 and as low as 7.16, with a median of 11.47, all within the past year.

FBR is also sporting a PEG ratio of 0.86. 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. FBR's industry currently sports an average PEG of 0.90. Over the last 12 months, FBR's PEG has been as high as 0.92 and as low as 0.68, with a median of 0.76.

Another valuation metric that we should highlight is FBR's P/B ratio of 2.29. Investors use the P/B ratio to look at a stock's market value versus 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 2.37. FBR's P/B has been as high as 2.65 and as low as 1.54, with a median of 2.15, over the past year.

These are only a few of the key metrics included in Fibria Celulose'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, FBR looks like an impressive value stock at the moment.