Are Investors Undervaluing Klabin (KLBAY) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Klabin (KLBAY) is a stock many investors are watching right now. KLBAY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.40. This compares to its industry's average Forward P/E of 6.20. Over the past year, KLBAY's Forward P/E has been as high as 10.79 and as low as 3.55, with a median of 5.32.

Another valuation metric that we should highlight is KLBAY's P/B ratio of 2.36. 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 stock's P/B looks attractive against its industry's average P/B of 2.73. Over the past year, KLBAY's P/B has been as high as 4.71 and as low as 1.98, with a median of 2.65.

Finally, investors will want to recognize that KLBAY has a P/CF ratio of 4.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KLBAY's current P/CF looks attractive when compared to its industry's average P/CF of 8.66. KLBAY's P/CF has been as high as 6.32 and as low as 3.81, with a median of 4.88, all within the past year.

If you're looking for another solid Paper and Related Products value stock, take a look at Rayonier Advanced Materials (RYAM). RYAM is a # 2 (Buy) stock with a Value score of A.

Shares of Rayonier Advanced Materials currently holds a Forward P/E ratio of -6.67, and its PEG ratio is -2.74. In comparison, its industry sports average P/E and PEG ratios of 6.20 and 0.73.

RYAM's price-to-earnings ratio has been as high as -3.58 and as low as -24.73, with a median of -7.78, while its PEG ratio has been as high as -2.58 and as low as -11.61, with a median of -4, all within the past year.

Furthermore, Rayonier Advanced Materials holds a P/B ratio of 0.31 and its industry's price-to-book ratio is 2.73. RYAM's P/B has been as high as 0.61, as low as 0.21, with a median of 0.42 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Klabin and Rayonier Advanced Materials are likely undervalued currently. And when considering the strength of its earnings outlook, KLBAY and RYAM sticks out as one of the market's strongest value stocks.

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