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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Boise Cascade (BCC). BCC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.45. This compares to its industry's average Forward P/E of 34.14. Over the past year, BCC's Forward P/E has been as high as 25.07 and as low as 8.42, with a median of 17.11.
Investors should also note that BCC holds a PEG ratio of 1.51. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BCC's industry currently sports an average PEG of 2.74. Over the past 52 weeks, BCC's PEG has been as high as 5.31 and as low as 1.02, with a median of 2.26.
We should also highlight that BCC has a P/B ratio of 2.34. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.77. Over the past year, BCC's P/B has been as high as 2.56 and as low as 1.15, with a median of 2.03.
Finally, investors will want to recognize that BCC has a P/CF ratio of 6.64. 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. This stock's P/CF looks attractive against its industry's average P/CF of 23.65. BCC's P/CF has been as high as 11.82 and as low as 4.68, with a median of 8.58, all within the past year.
These are just a handful of the figures considered in Boise Cascade's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BCC is an impressive value stock right now.
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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
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