1. Suzano S.A. (NYSE:SUZ)
Market Capitalization: $11.94 Billion
1-Year Performance: -17.23%
Number of Hedge Fund Holders: 13
Analyst Upside Potential: 46.16%
Suzano S.A. (NYSE:SUZ) is a Brazilian forestry company that is considered one of the largest producers of eucalyptus pulp and paper in the world. It focuses on using planted eucalyptus forests to create sustainable products. The company operates through two main segments namely the Pulp and Paper Segment.
During the fiscal third quarter of 2024, the company expanded its business by strategically acquiring a 15% stake in Lenzing and US-based packaging assets from Pactiv Evergreen. Moreover, the company has been growing its sales across both business segments. In the fiscal fourth quarter of 2024, Suzano S.A. (NYSE:SUZ) grew its pulp sales by 19% year-over-year, whereas paper sales grew by 11% during the same time. As a result, its net revenue rose 37% year-over-year to reach $14.177 billion.
The company has faced some headwinds due to a 15% decline in pulp prices in China, however, management noted the prices have now stabilized. The stock has declined around 17% over the past year, however, analysts see a 46% upside potential, making it the worst-performing large-cap stock to buy according to analysts.
While we acknowledge the potential of Suzano S.A. (NYSE:SUZ) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SUZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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