Yahoo Finance Is Sappi (SPPJY) Stock Undervalued Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Sappi (SPPJY). SPPJY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.98 right now. For comparison, its industry sports an average P/E of 7.59. SPPJY's Forward P/E has been as high as 6.26 and as low as 2.19, with a median of 5.04, all within the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SPPJY has a P/S ratio of 0.23. This compares to its industry's average P/S of 0.47.
Finally, our model also underscores that SPPJY has a P/CF ratio of 1.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SPPJY's current P/CF looks attractive when compared to its industry's average P/CF of 4.54. Over the past 52 weeks, SPPJY's P/CF has been as high as 4.72 and as low as 1.54, with a median of 2.21.
Another great Paper and Related Products stock you could consider is Suzano (SUZ), which is a # 1 (Strong Buy) stock with a Value Score of A.
Suzano is trading at a forward earnings multiple of 5.29 at the moment, with a PEG ratio of 0.60. This compares to its industry's average P/E of 7.59 and average PEG ratio of 0.83.
SUZ's price-to-earnings ratio has been as high as 8.45 and as low as 2.69, with a median of 4.75, while its PEG ratio has been as high as 0.84 and as low as 0.24, with a median of 0.48, all within the past year.
Additionally, Suzano has a P/B ratio of 2.30 while its industry's price-to-book ratio sits at 2.74. For SUZ, this valuation metric has been as high as 6.21, as low as 2.10, with a median of 2.64 over the past year.
These are only a few of the key metrics included in Sappi and Suzano strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SPPJY and SUZ look like an impressive value stock at the moment.
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Sappi Ltd. (SPPJY) : Free Stock Analysis Report
Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report
