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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Boise Cascade (BCC) is a stock many investors are watching right now. BCC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.98, which compares to its industry's average of 18.53. Over the past 52 weeks, BCC's Forward P/E has been as high as 16.41 and as low as 5.23, with a median of 11.18.
We also note that BCC holds a PEG ratio of 0.68. 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 0.73 right now. Within the past year, BCC's PEG has been as high as 1.60 and as low as 0.51, with a median of 1.03.
We should also highlight that BCC has a P/B ratio of 1.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.65. Over the past 12 months, BCC's P/B has been as high as 2.98 and as low as 1.55, with a median of 2.26.
These are just a handful of the figures considered in Boise Cascade'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 is an impressive value stock right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
