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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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.
Boise Cascade (BCC) is a stock many investors are watching right now. BCC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.58, while its industry has an average P/E of 38.60. Over the past year, BCC's Forward P/E has been as high as 25.07 and as low as 8.42, with a median of 17.19.
We also note that BCC holds a PEG ratio of 2.56. 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 currently sports an average PEG of 3.10. Over the last 12 months, BCC's PEG has been as high as 5.31 and as low as 1.02, with a median of 2.26.
Another notable valuation metric for BCC is its P/B ratio of 2.41. 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 attractive against its industry's average P/B of 2.77. Over the past year, BCC's P/B has been as high as 2.65 and as low as 1.15, with a median of 1.94.
Finally, investors should note that BCC has a P/CF ratio of 9.22. 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. This stock's P/CF looks attractive against its industry's average P/CF of 23.65. Over the past year, BCC's P/CF has been as high as 11.82 and as low as 4.68, with a median of 9.23.
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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