Is Suzano (SUZ) Stock Undervalued 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Suzano (SUZ Quick QuoteSUZ – Free Report) is a stock many investors are watching right now. SUZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

We should also highlight that SUZ has a P/B ratio of 1.79. 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. This company’s current P/B looks solid when compared to its industry’s average P/B of 2.59. 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 1.69.

Finally, investors should note that SUZ has a P/CF ratio of 5.50. 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 13.66. Over the past year, SUZ’s P/CF has been as high as 8.08 and as low as 3.11, with a median of 5.25.

These are only a few of the key metrics included in Suzano’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SUZ looks like an impressive value stock at the moment.