Are Investors Undervaluing Boise Cascade (BCC) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.25, while its industry has an average P/E of 26.35. 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 9.28.
Another valuation metric that we should highlight is BCC's P/B ratio of 2.13. 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 3.34. BCC's P/B has been as high as 2.24 and as low as 1.12, with a median of 1.58, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCC has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.42.
Finally, our model also underscores that BCC has a P/CF ratio of 7.87. 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. BCC's P/CF compares to its industry's average P/CF of 28.02. Within the past 12 months, BCC's P/CF has been as high as 8.26 and as low as 2.49, with a median of 5.11.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
