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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.25, while its industry has an average P/E of 33.46. Over the last 12 months, BCC's Forward P/E has been as high as 25.07 and as low as 8.42, with a median of 16.62.
Investors should also note that BCC holds a PEG ratio of 0.99. 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 PEG compares to its industry's average PEG of 2.68. Over the last 12 months, BCC's PEG has been as high as 5.31 and as low as 0.88, with a median of 2.22.
Another valuation metric that we should highlight is BCC's P/B ratio of 2.20. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.77. Over the past year, BCC's P/B has been as high as 2.56 and as low as 1.15, with a median of 2.03.
Finally, investors will want to recognize that BCC has a P/CF ratio of 6.59. 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. BCC's current P/CF looks attractive when compared to its industry's average P/CF of 23.65. Over the past 52 weeks, BCC's P/CF has been as high as 11.82 and as low as 4.68, with a median of 8.16.
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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