Back to top

Image: Bigstock

Boise Cascade (BCC) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Boise Cascade (BCC - Free Report) closed at $54.16, marking a +0.11% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.91%.

Heading into today, shares of the engineered wood products and plywood company had gained 2% over the past month, outpacing the Construction sector's loss of 3.1% and the S&P 500's gain of 0.01% in that time.

Investors will be hoping for strength from BCC as it approaches its next earnings release. 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%.

It is also important to note the recent changes to analyst estimates for BCC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BCC currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, BCC is holding a Forward P/E ratio of 3.48. Its industry sports an average Forward P/E of 12.63, so we one might conclude that BCC is trading at a discount comparatively.

We can also see that BCC currently has a PEG ratio of 0.34. 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. Building Products - Wood stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 97, putting 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

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

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

Published in