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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.

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.

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 a Value grade of A. The stock holds a P/E ratio of 5.82, while its industry has an average P/E of 11.88. 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 7.01.

Another valuation metric that we should highlight is SUZ's P/B ratio of 1.87. The P/B is a method of comparing a stock's market value to 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 2.76. Over the past 12 months, SUZ's P/B has been as high as 1.93 and as low as 1.30, with a median of 1.71.

Finally, investors should note that SUZ has a P/CF ratio of 5.75. 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 current P/CF looks attractive when compared to its industry's average P/CF of 14.54. Within the past 12 months, SUZ's P/CF has been as high as 8.08 and as low as 3.11, with a median of 5.45.

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 at as one of the market's strongest value stocks.


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