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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Boise Cascade (BCC) is a stock many investors are watching right now. BCC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.16, while its industry has an average P/E of 17.56. BCC's Forward P/E has been as high as 16.41 and as low as 5.23, with a median of 12.42, all within the past year.
Investors will also notice that BCC has a PEG ratio of 0.60. 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 PEG compares to its industry's average PEG of 0.76. Over the last 12 months, BCC's PEG has been as high as 1.84 and as low as 0.51, with a median of 1.19.
Another valuation metric that we should highlight is BCC's P/B ratio of 1.86. 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 3.80. BCC's P/B has been as high as 2.98 and as low as 1.55, with a median of 2.28, over the past year.
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
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