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Is Mercer International (MERC) 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.

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.

Mercer International (MERC) is a stock many investors are watching right now. MERC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.56. This compares to its industry's average Forward P/E of 6.98. MERC's Forward P/E has been as high as 8.42 and as low as 4.01, with a median of 5.55, all within the past year.

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Finally, our model also underscores that MERC has a P/CF ratio of 2.56. 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. MERC's P/CF compares to its industry's average P/CF of 10.11. Over the past 52 weeks, MERC's P/CF has been as high as 5.40 and as low as 1.88, with a median of 2.81.

Veritiv (VRTV) may be another strong Paper and Related Products stock to add to your shortlist. VRTV is a # 1 (Strong Buy) stock with a Value grade of A.

Shares of Veritiv are currently trading at a forward earnings multiple of 7.32 and a PEG ratio of 0.48 compared to its industry's P/E and PEG ratios of 6.98 and 0.62, respectively.

VRTV's price-to-earnings ratio has been as high as 19.54 and as low as 6.09, with a median of 9.80, while its PEG ratio has been as high as 0.62 and as low as 0.40, with a median of 0.51, all within the past year.

Veritiv also has a P/B ratio of 2.94 compared to its industry's price-to-book ratio of 0.81. Over the past year, its P/B ratio has been as high as 4.10, as low as 2.04, with a median of 2.77.

These are only a few of the key metrics included in Mercer International and Veritiv strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MERC and VRTV look like an impressive value stock at the moment.


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