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Is Boise Cascade (BCC) a Great Value Stock Right Now?

Zacks Equity Research
·3 min read

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Boise Cascade (BCC). BCC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.32. This compares to its industry's average Forward P/E of 32.10. Over the last 12 months, BCC's Forward P/E has been as high as 25.07 and as low as 8.42, with a median of 15.51.

Investors should also note that BCC holds a PEG ratio of 1.50. 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 has an average PEG of 2.57 right now. Over the last 12 months, BCC's PEG has been as high as 5.31 and as low as 0.88, with a median of 1.70.

Another notable valuation metric for BCC is its P/B ratio of 2.50. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BCC's current P/B looks attractive when compared to its industry's average P/B of 2.77. Over the past 12 months, BCC's P/B has been as high as 2.56 and as low as 1.15, with a median of 2.05.

Finally, our model also underscores that BCC has a P/CF ratio of 7.49. 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. This stock's P/CF looks attractive against its industry's average P/CF of 23.65. Over the past year, BCC's P/CF has been as high as 11.18 and as low as 4.68, with a median of 7.68.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Boise Cascade is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCC feels like a great value stock at the moment.


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