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Are Investors Undervaluing Boise Cascade (BCC) Right Now?

·3 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Boise Cascade (BCC). BCC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

BCC is also sporting a PEG ratio of 1.46. 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 4.26 right now. Within the past year, BCC's PEG has been as high as 5.31 and as low as 0.88, with a median of 1.57.

Another valuation metric that we should highlight is BCC's P/B ratio of 2.51. The P/B ratio is used to compare a stock's market value with 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 2.77. Over the past year, BCC's P/B has been as high as 2.69 and as low as 1.15, with a median of 2.10.

Finally, investors should note that BCC has a P/CF ratio of 7.54. 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 current P/CF looks attractive when compared 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 4.68, with a median of 7.44.

Value investors will likely look at more than just these metrics, but the above data helps show that Boise Cascade is likely undervalued currently. And when considering the strength of its earnings outlook, BCC sticks out at as one of the market's strongest value stocks.


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