Should Value Investors Buy Boise Cascade (BCC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now 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 9.55. This compares to its industry's average Forward P/E of 21.55. BCC's Forward P/E has been as high as 12.74 and as low as 3.13, with a median of 8.06, all within the past year.
Another notable valuation metric for BCC is its P/B ratio of 1.93. 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. BCC's current P/B looks attractive when compared to its industry's average P/B of 3.20. Over the past 12 months, BCC's P/B has been as high as 2.04 and as low as 1.12, with a median of 1.39.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCC has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.18.
If you're looking for another solid Building Products - Wood value stock, take a look at LouisianaPacific (LPX). LPX is a # 2 (Buy) stock with a Value score of A.
LouisianaPacific sports a P/B ratio of 3.07 as well; this compares to its industry's price-to-book ratio of 3.20. In the past 52 weeks, LPX's P/B has been as high as 3.99, as low as 2.62, with a median of 3.13.
These are just a handful of the figures considered in Boise Cascade and LouisianaPacific'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 and LPX is an impressive value stock right now.
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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
