SUZ

ROST, SUZ, BBVA, GL and AME offer high ROE and cash-rich profiles as investors navigate renewed Middle East tensions.

LONDON--(BUSINESS WIRE)--Arbex, a new global leader in tissue and hygiene, today commences operations as an independent business and unveils details of its brand, leadership team, and company structure. Announced in June 2025 as a $3.4 billion joint venture between Suzano (NYSE: SUZ), the world's largest pulp supplier, and Kimberly-Clark Corporation (NASDAQ: KMB), a global leader in consumer goods and personal care, the new business will manufacture, market and distribute consumer and professio.

Investors looking for stocks in the Paper and Related Products sector might want to consider either Suzano S.A. Sponsored ADR (SUZ) or Klabin SA (KLBAY).

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.

The near-term outlook for the Zacks Paper and Related Products industry is uncertain. Stocks like SUZ and MERC are braving the industry headwinds.

Investors with an interest in Paper and Related Products stocks have likely encountered both Suzano S.A. Sponsored ADR (SUZ) and Klabin SA (KLBAY).

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.

Suzano S.A. is progressing with deleveraging, but at a slower pace than ideal due to excess CapEx and buybacks. Net debt reduction would have been approximately 5% in Q1 absent excess CapEx and buybacks, but actual reduction was closer to 2%. Suzano benefits from substantial input cost hedging and high fixed-rate debt exposure, mitigating capital cost risks and Brent price volatility, buying margins time despite Hormuz.

I reiterate my buy rating as the scale perhaps makes Suzano the best player to weather this volatile pulp market. The pulp market was marked by price volatility last year and also by a trend of lower profitability for producers like SUZ. The pulp price is growing this year as the market is absorbing costs from chemicals and wood chips (due to logistic disruptions provoked by the Iran war).

Britain's competition ​watchdog said ‌on Thursday ​it ​would not refer ⁠the ​proposed $3.4 billion ​joint venture between Brazilian ​pulp ​producer Suzano and ‌consumer ⁠goods giant Kimberly-Clark ​for ​a ⁠Phase 2 ​investigation.