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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, 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Suzano (SUZ). SUZ is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.10, which compares to its industry's average of 11.08. SUZ's Forward P/E has been as high as 8.72 and as low as -53.51, with a median of 6.99, all within the past year.
Investors should also recognize that SUZ has a P/B ratio of 2.17. The P/B ratio pits a stock's market value against 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 2.58. SUZ's P/B has been as high as 2.39 and as low as 1.30, with a median of 1.74, over 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 at as one of the market's strongest value stocks.
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This article originally published on Zacks Investment Research (zacks.com).