We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sylvamo Corporation (SLVM) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
Have you been paying attention to shares of Sylvamo Corporation (SLVM - Free Report) ? Shares have been on the move with the stock up 9.2% over the past month. The stock hit a new 52-week high of $78.99 in the previous session. Sylvamo Corporation has gained 56.7% since the start of the year compared to the -5.3% move for the Zacks Basic Materials sector and the 7.9% return for the Zacks Paper and Related Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 9, 2024, Sylvamo reported EPS of $1.98 versus consensus estimate of $1.64.
Valuation Metrics
Sylvamo may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Sylvamo has a Value Score of B. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 7.6X versus its peer group's average of 7.5X. Additionally, the stock has a PEG ratio of 4.54. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Sylvamo currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Sylvamo meets the list of requirements. Thus, it seems as though Sylvamo shares could still be poised for more gains ahead.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sylvamo Corporation (SLVM) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Sylvamo Corporation (SLVM - Free Report) ? Shares have been on the move with the stock up 9.2% over the past month. The stock hit a new 52-week high of $78.99 in the previous session. Sylvamo Corporation has gained 56.7% since the start of the year compared to the -5.3% move for the Zacks Basic Materials sector and the 7.9% return for the Zacks Paper and Related Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 9, 2024, Sylvamo reported EPS of $1.98 versus consensus estimate of $1.64.
Valuation Metrics
Sylvamo may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Sylvamo has a Value Score of B. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 7.6X versus its peer group's average of 7.5X. Additionally, the stock has a PEG ratio of 4.54. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Sylvamo currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Sylvamo meets the list of requirements. Thus, it seems as though Sylvamo shares could still be poised for more gains ahead.