Is Boise Cascade (BCC) Stock Undervalued Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.19. This compares to its industry's average Forward P/E of 28.49. Over the last 12 months, BCC's Forward P/E has been as high as 17.19 and as low as 10.54, with a median of 13.62.
Investors should also recognize that BCC has a P/B ratio of 2.07. 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 2.93. Within the past 52 weeks, BCC's P/B has been as high as 2.07 and as low as 1.15, with a median of 1.56.
Finally, investors should note that BCC has a P/CF ratio of 12.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 40.54. Within the past 12 months, BCC's P/CF has been as high as 12.04 and as low as 4.24, with a median of 7.07.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.