Is Suzano (SUZ) a Great Value Stock Right Now?

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Suzano (SUZ). SUZ is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.36 right now. For comparison, its industry sports an average P/E of 11.12. Over the past year, SUZ's Forward P/E has been as high as 8.72 and as low as -53.51, with a median of 6.01.

SUZ is also sporting a PEG ratio of 0.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SUZ's industry currently sports an average PEG of 0.22. Over the past 52 weeks, SUZ's PEG has been as high as 0.14 and as low as 0.01, with a median of 0.12.

Finally, we should also recognize that SUZ has a P/CF ratio of 3.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.70. Within the past 12 months, SUZ's P/CF has been as high as 39.34 and as low as 3.52, with a median of 7.53.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Suzano is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SUZ feels like a great value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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