Are Investors Undervaluing Boise Cascade (BCC) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.43. This compares to its industry's average Forward P/E of 19.83. Over the past year, BCC's Forward P/E has been as high as 12.74 and as low as 3.13, with a median of 8.55.
Another notable valuation metric for BCC is its P/B ratio of 1.89. 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 solid versus its industry's average P/B of 3.02. Over the past 12 months, BCC's P/B has been as high as 2.04 and as low as 1.12, with a median of 1.41.
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 0.59. This compares to its industry's average P/S of 1.14.
Finally, investors will want to recognize that BCC has a P/CF ratio of 5.85. 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. BCC's current P/CF looks attractive when compared to its industry's average P/CF of 23.36. BCC's P/CF has been as high as 6.32 and as low as 2.33, with a median of 3.18, 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
