The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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 13.90. Over the past 52 weeks, SUZ's Forward P/E has been as high as 8.72 and as low as -53.51, with a median of 6.01.
Investors will also notice that SUZ has 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 currently sports an average PEG of 0.32. Over the last 12 months, SUZ's PEG has been as high as 0.14 and as low as 0.01, with a median of 0.12.
Investors should also recognize that SUZ has a P/B ratio of 1.65. 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 1.93. Within the past 52 weeks, SUZ's P/B has been as high as 2.39 and as low as 1.55, with a median of 1.81.
Finally, investors should note that SUZ has a P/CF ratio of 3.75. 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 7.90. 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.
Value investors will likely look at more than just these metrics, but the above data helps show that Suzano is likely undervalued currently. And when considering the strength of its earnings outlook, SUZ sticks out as one of the market's strongest value stocks.
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Suzano S.A. Sponsored ADR (SUZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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