Boise Cascade (BCC) Laps the Stock Market: Here's Why
Boise Cascade (BCC) closed the most recent trading day at $98.72, moving +1.15% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.
The engineered wood products and plywood company's shares have seen a decrease of 5.33% over the last month, surpassing the Construction sector's loss of 6.52% and falling behind the S&P 500's loss of 3.39%.
The investment community will be paying close attention to the earnings performance of Boise Cascade in its upcoming release. It is anticipated that the company will report an EPS of $3.44, marking a 37.68% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.85 billion, indicating a 14.24% decrease compared to the same quarter of the previous year.
BCC's full-year Zacks Consensus Estimates are calling for earnings of $11.75 per share and revenue of $6.7 billion. These results would represent year-over-year changes of -45.5% and -20.08%, respectively.
It is also important to note the recent changes to analyst estimates for Boise Cascade. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Boise Cascade is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Boise Cascade has a Forward P/E ratio of 8.3 right now. For comparison, its industry has an average Forward P/E of 15.25, which means Boise Cascade is trading at a discount to the group.
The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
