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Are Investors Undervaluing Boise Cascade (BCC) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 value investors might notice is Boise Cascade (BCC - Free Report) . BCC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 14.85 right now. For comparison, its industry sports an average P/E of 36.91. 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.

BCC is also sporting a PEG ratio of 1.67. 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 2.96. Over the past 52 weeks, BCC's PEG has been as high as 5.31 and as low as 1.02, with a median of 2.26.

We should also highlight that BCC has a P/B ratio of 2.27. 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. Over the past year, BCC's P/B has been as high as 2.56 and as low as 1.15, with a median of 1.99.

Finally, investors will want to recognize that BCC has a P/CF ratio of 9.04. 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 23.65. Over the past year, BCC's P/CF has been as high as 11.82 and as low as 4.68, with a median of 9.22.

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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