Is Boise Cascade (BCC) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 company value investors might notice is Boise Cascade (BCC). BCC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 9.30, while its industry has an average P/E of 20.97. Over the last 12 months, BCC's Forward P/E has been as high as 12.74 and as low as 3.13, with a median of 8.34.
We should also highlight that BCC has a P/B ratio of 1.87. 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. This stock's P/B looks attractive against its industry's average P/B of 3.16. Within the past 52 weeks, BCC's P/B has been as high as 2.04 and as low as 1.12, with a median of 1.39.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BCC has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.17.
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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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
