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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Sappi (SPPJY) is a stock many investors are watching right now. SPPJY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SPPJY has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.8.
Finally, our model also underscores that SPPJY has a P/CF ratio of 4.98. 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. SPPJY's current P/CF looks attractive when compared to its industry's average P/CF of 14.28. Within the past 12 months, SPPJY's P/CF has been as high as 8.66 and as low as 2.27, with a median of 6.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Sappi is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SPPJY feels like a great value stock at the moment.
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Sappi Ltd. (SPPJY) : Free Stock Analysis Report