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Are Investors Undervaluing Boise Cascade (BCC) Right Now?

·2 min read

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

BCC is also sporting a PEG ratio of 1.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BCC's industry has an average PEG of 3.76 right now. Over the last 12 months, BCC's PEG has been as high as 5.31 and as low as 0.88, with a median of 1.50.

Finally, investors should note that BCC has a P/CF ratio of 9.24. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BCC's P/CF compares to its industry's average P/CF of 23.65. Over the past 52 weeks, BCC's P/CF has been as high as 10.20 and as low as 5.24, with a median of 7.42.

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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