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Boise Cascade (BCC) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Boise Cascade, L.L.C. (BCC - Free Report) ? Shares have been on the move with the stock up 16% over the past month. The stock hit a new 52-week high of $69.61 in the previous session. Boise Cascade, L.L.C. has gained 44.3% since the start of the year compared to the 23.9% move for the Zacks Construction sector and the 29% return for the Zacks Building Products - Wood industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 22, 2021, Boise Cascade reported EPS of $1.76 versus consensus estimate of $1.1.
Valuation Metrics
Boise Cascade may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Boise Cascade has a Value Score of A. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 8X versus its peer group's average of 15.6X. Additionally, the stock has a PEG ratio of 0.91. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Boise Cascade currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Boise Cascade passes the test. Thus, it seems as though Boise Cascade shares could still be poised for more gains ahead.
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Boise Cascade (BCC) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Boise Cascade, L.L.C. (BCC - Free Report) ? Shares have been on the move with the stock up 16% over the past month. The stock hit a new 52-week high of $69.61 in the previous session. Boise Cascade, L.L.C. has gained 44.3% since the start of the year compared to the 23.9% move for the Zacks Construction sector and the 29% return for the Zacks Building Products - Wood industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 22, 2021, Boise Cascade reported EPS of $1.76 versus consensus estimate of $1.1.
Valuation Metrics
Boise Cascade may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Boise Cascade has a Value Score of A. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 8X versus its peer group's average of 15.6X. Additionally, the stock has a PEG ratio of 0.91. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Boise Cascade currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Boise Cascade passes the test. Thus, it seems as though Boise Cascade shares could still be poised for more gains ahead.