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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice 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 14.78. This compares to its industry's average Forward P/E of 25.93. Over the past 52 weeks, BCC's Forward P/E has been as high as 16.13 and as low as 10.09, with a median of 13.33.
BCC is also sporting a PEG ratio of 1.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BCC's industry currently sports an average PEG of 3.50. Over the past 52 weeks, BCC's PEG has been as high as 2.50 and as low as 0.92, with a median of 1.92.
Another notable valuation metric for BCC is its P/B ratio of 1.73. 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 solid versus its industry's average P/B of 2.66. Over the past year, BCC's P/B has been as high as 1.87 and as low as 1.15, with a median of 1.56.
Finally, our model also underscores that BCC has a P/CF ratio of 10.05. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BCC's current P/CF looks attractive when compared to its industry's average P/CF of 37. Over the past year, BCC's P/CF has been as high as 10.55 and as low as 4.24, with a median of 6.65.
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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