Are Investors Undervaluing Suzano (SUZ) Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Suzano (SUZ). 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 13.28. Over the last 12 months, 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 figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SUZ's industry has an average PEG of 0.31 right now. 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.

We should also highlight that SUZ has a P/B ratio of 1.65. 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. SUZ's current P/B looks attractive when compared to its industry's average P/B of 1.86. SUZ's P/B has been as high as 2.39 and as low as 1.55, with a median of 1.81, over the past year.

Finally, our model also underscores 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 8.17. SUZ's P/CF has been as high as 39.34 and as low as 3.52, with a median of 7.53, all within the past year.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research