Are Investors Undervaluing Boise Cascade (BCC) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Boise Cascade (BCC). BCC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.07, while its industry has an average P/E of 18.49. Over the last 12 months, BCC's Forward P/E has been as high as 21.99 and as low as 13.23, with a median of 16.01.
BCC is also sporting a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BCC's industry currently sports an average PEG of 2.41. Over the past 52 weeks, BCC's PEG has been as high as 2.42 and as low as 0.88, with a median of 1.14.
Another notable valuation metric for BCC is its P/B ratio of 2.44. 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 2.96. BCC's P/B has been as high as 2.70 and as low as 1.77, with a median of 2.33, over the past year.
Finally, our model also underscores that BCC has a P/CF ratio of 7.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BCC's P/CF compares to its industry's average P/CF of 16.97. Over the past 52 weeks, BCC's P/CF has been as high as 11.03 and as low as 7.63, with a median of 9.35.
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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Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
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