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Are Investors Undervaluing Suzano (SUZ) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Suzano (SUZ - Free Report) . SUZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 1.12, which compares to its industry's average of 3.22. SUZ's Forward P/E has been as high as 7.81 and as low as 1.07, with a median of 6.46, all within the past year.

Investors should also recognize that SUZ has a P/B ratio of 1.50. The P/B ratio is used to compare a stock's market value with 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 2.33. Within the past 52 weeks, SUZ's P/B has been as high as 1.89 and as low as 1.41, with a median of 1.66.

Finally, investors should note that SUZ has a P/CF ratio of 3.89. 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 7.25. Over the past 52 weeks, SUZ's P/CF has been as high as 4.91 and as low as 1.97, with a median of 2.88.

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.


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