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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Boise Cascade (BCC). BCC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 16.31, while its industry has an average P/E of 37.74. 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 17.19.
Investors will also notice that BCC has a PEG ratio of 1.83. 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 3.03. 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 2.52. 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 solid versus its industry's average P/B of 2.77. Within the past 52 weeks, BCC's P/B has been as high as 2.54 and as low as 1.15, with a median of 1.97.
Finally, our model also underscores that BCC has a P/CF ratio of 10.03. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.65. BCC's P/CF has been as high as 11.82 and as low as 4.68, with a median of 9.23, all within the past year.
These are only a few of the key metrics included in Boise Cascade's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BCC looks like an impressive value stock at the moment.
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Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.