Bull of the Day: Boise Cascade (BCC)
Boise Cascade (BCC) is a Zacks Rank #1 (Buy) and it sports an A for Value and a B for Growth. This stock has been on a big since it last reported in early May. That earnings report was a big beat and led to higher earnings estimates. Let’s explore more about this company in this Bull of The Day article.
Description
Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The company sells its products to dealers, home improvement centers, and specialty distributors. The company was incorporated in 2004 and is headquartered in Boise, Idaho.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Boise Cascade, I see three beats Zacks Consensus Estimate and one miss over the last calendar year. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
Last quarter saw EPS of $2.43 when $1.81 was expected. The $0.62 difference works out to be a 34% positive earnings surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have increased for BCC.
This quarter has seen a move from $2.26 to $2.54.
Next quarter has moved from a $2.61 to $2.65.
The full year numbers are certainly more important… and they are moving higher as well.
This year has moved from $8.66 to $8.93.
Next year is now up to $8.42, move up from $7.37.
Valuation
When I first look at valuation, I go right to the forward PE. For BCC I see a 10.5x level which is just about half the 20.6x industry average. The price to book multiple of 1.7x is well below the 7.6x industry average as well. Finally we have a 0.5x price to sales multiple which is significantly lower than the 4x industry average. The valuation comparison to the industry average alone makes BCC worth a deeper look.
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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
