Is Boise Cascade (BCC) a Great Value Stock 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.
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.
One stock to keep an eye on is Boise Cascade (BCC). BCC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 14.90, which compares to its industry's average of 26.57. Over the past year, BCC's Forward P/E has been as high as 16.13 and as low as 10.09, with a median of 13.13.
We also note that BCC holds a PEG ratio of 1.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BCC's industry has an average PEG of 3.57 right now. Within the past year, BCC's PEG has been as high as 2.50 and as low as 0.92, with a median of 1.90.
Another valuation metric that we should highlight is BCC's P/B ratio of 1.73. Investors use the P/B ratio to look at a stock's market value versus 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 2.70. Within the past 52 weeks, BCC's P/B has been as high as 2.28 and as low as 1.15, with a median of 1.56.
Finally, investors will want to recognize that BCC has a P/CF ratio of 10.06. 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 current P/CF looks attractive when compared to its industry's average P/CF of 37.48. Over the past year, BCC's P/CF has been as high as 10.28 and as low as 4.24, with a median of 6.65.
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.
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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.