Australia markets open in 4 hours 35 minutes

    +27.20 (+0.38%)

    +0.0005 (+0.07%)
  • ASX 200

    +23.80 (+0.34%)
  • OIL

    -0.94 (-1.02%)
  • GOLD

    -14.00 (-0.75%)
  • Bitcoin AUD

    +125.72 (+0.30%)
  • CMC Crypto 200

    +0.90 (+0.15%)

Is Klabin (KLBAY) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company value investors might notice is Klabin (KLBAY). KLBAY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 3.66 right now. For comparison, its industry sports an average P/E of 6.17. KLBAY's Forward P/E has been as high as 10.79 and as low as 3.66, with a median of 5.71, all within the past year.

Finally, our model also underscores that KLBAY has a P/CF ratio of 4.13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. KLBAY's P/CF compares to its industry's average P/CF of 9.31. Within the past 12 months, KLBAY's P/CF has been as high as 7.70 and as low as 3.81, with a median of 5.03.

Investors could also keep in mind Mercer International (MERC), an Paper and Related Products stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Additionally, Mercer International has a P/B ratio of 1.42 while its industry's price-to-book ratio sits at 0.74. For MERC, this valuation metric has been as high as 1.52, as low as 1.04, with a median of 1.23 over the past year.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Klabin SA (KLBAY) : Free Stock Analysis Report
Mercer International Inc. (MERC) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research