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Boise Cascade (BCC) Gains But Lags Market: What You Should Know

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In the latest trading session, Boise Cascade (BCC - Free Report) closed at $73.41, marking a +1.03% move from the previous day. The stock lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.

Prior to today's trading, shares of the engineered wood products and plywood company had gained 6.06% over the past month. This has lagged the Construction sector's gain of 7.18% and outpaced the S&P 500's gain of 4.58% in that time.

Boise Cascade will be looking to display strength as it nears its next earnings release. On that day, Boise Cascade is projected to report earnings of $2.97 per share, which would represent a year-over-year decline of 30.28%. Meanwhile, our latest consensus estimate is calling for revenue of $1.82 billion, up 2.28% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Boise Cascade. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4% lower within the past month. Boise Cascade is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Boise Cascade has a Forward P/E ratio of 8.33 right now. This represents a discount compared to its industry's average Forward P/E of 21.91.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BCC in the coming trading sessions, be sure to utilize Zacks.com.


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