Should Value Investors Buy Boise Cascade (BCC) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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.

One company value investors might notice is Boise Cascade (BCC). BCC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.02. This compares to its industry's average Forward P/E of 19.03. Over the past 52 weeks, BCC's Forward P/E has been as high as 14.44 and as low as 4.45, with a median of 7.46.

Investors should also recognize that BCC has a 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 attractive against its industry's average P/B of 3.91. Over the past year, BCC's P/B has been as high as 2.98 and as low as 1.55, with a median of 2.12.

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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