Should Value Investors Buy Rayonier Advanced Materials (RYAM) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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 Rayonier Advanced Materials (RYAM). RYAM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RYAM has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.81.Finally, investors will want to recognize that RYAM has a P/CF ratio of 9.64. 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. RYAM's current P/CF looks attractive when compared to its industry's average P/CF of 14.32. RYAM's P/CF has been as high as 11.06 and as low as 1.85, with a median of 7.09, all within the past year.Value investors will likely look at more than just these metrics, but the above data helps show that Rayonier Advanced Materials is likely undervalued currently. And when considering the strength of its earnings outlook, RYAM sticks out at as one of the market's strongest value stocks.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.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 Rayonier Advanced Materials Inc. (RYAM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks