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Is BlueLinx Holdings (BXC) Stock Undervalued Right Now?

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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 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 BlueLinx Holdings (BXC - Free Report) . BXC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.02. This compares to its industry's average Forward P/E of 35.59. Over the past year, BXC's Forward P/E has been as high as 24.89 and as low as -102.41, with a median of 9.85.

Finally, our model also underscores that BXC has a P/CF ratio of 7.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BXC's current P/CF looks attractive when compared to its industry's average P/CF of 23.65. Within the past 12 months, BXC's P/CF has been as high as 41,252.96 and as low as 1.44, with a median of 5.63.

These are only a few of the key metrics included in BlueLinx Holdings'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, BXC looks like an impressive value stock at the moment.


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