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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Suzano (SUZ – Free Report) . SUZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.86 right now. For comparison, its industry sports an average P/E of 10.12. 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 6.91.
Another valuation metric that we should highlight is SUZ’s P/B ratio of 2.07. 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. SUZ’s current P/B looks attractive when compared to its industry’s average P/B of 2.57. SUZ’s P/B has been as high as 2.39 and as low as 1.30, with a median of 1.76, over the past year.
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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