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Boise Cascade (BCC) Dips More Than Broader Markets: What You Should Know

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Boise Cascade (BCC - Free Report) closed the most recent trading day at $56.86, moving -1.44% from the previous trading session. This change lagged the S&P 500's daily loss of 0.13%.

Prior to today's trading, shares of the engineered wood products and plywood company had gained 5.74% over the past month. This has outpaced the Construction sector's gain of 1.25% and the S&P 500's gain of 2.07% in that time.

Wall Street will be looking for positivity from BCC as it approaches its next earnings report date. In that report, analysts expect BCC to post earnings of $2.28 per share. This would mark a year-over-year decline of 20.83%.

Any recent changes to analyst estimates for BCC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BCC is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note BCC's current valuation metrics, including its Forward P/E ratio of 3.71. For comparison, its industry has an average Forward P/E of 13.76, which means BCC is trading at a discount to the group.

We can also see that BCC currently has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Wood was holding an average PEG ratio of 1.09 at yesterday's closing price.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.

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