Back to top

Image: Bigstock

Is Boise Cascade (BCC) Stock Undervalued Right Now?

Read MoreHide Full Article

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.92, while its industry has an average P/E of 14.44. Over the past 52 weeks, BCC's Forward P/E has been as high as 21 and as low as 5.63, with a median of 13.36.

Investors will also notice that BCC has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BCC's PEG compares to its industry's average PEG of 0.65. BCC's PEG has been as high as 3.86 and as low as 0.55, with a median of 1.32, all within the past year.

Another notable valuation metric for BCC is its P/B ratio of 2.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BCC's current P/B looks attractive when compared to its industry's average P/B of 3.90. BCC's P/B has been as high as 2.98 and as low as 1.88, with a median of 2.36, over the past year.

Finally, investors should note that BCC has a P/CF ratio of 5.88. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 19.14. Over the past 52 weeks, BCC's P/CF has been as high as 10.20 and as low as 5.64, with a median of 7.19.

Value investors will likely look at more than just these metrics, but the above data helps show that Boise Cascade is likely undervalued currently. And when considering the strength of its earnings outlook, BCC sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Boise Cascade, L.L.C. (BCC) - free report >>

Published in