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BCC or TREX: Which Is the Better Value Stock Right Now?
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Investors interested in Building Products - Wood stocks are likely familiar with Boise Cascade (BCC - Free Report) and Trex (TREX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Boise Cascade and Trex are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BCC has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BCC currently has a forward P/E ratio of 2.86, while TREX has a forward P/E of 25.22. We also note that BCC has a PEG ratio of 1.25. 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. TREX currently has a PEG ratio of 6.82.
Another notable valuation metric for BCC is its P/B ratio of 1.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TREX has a P/B of 7.77.
These metrics, and several others, help BCC earn a Value grade of A, while TREX has been given a Value grade of C.
BCC stands above TREX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCC is the superior value option right now.
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BCC or TREX: Which Is the Better Value Stock Right Now?
Investors interested in Building Products - Wood stocks are likely familiar with Boise Cascade (BCC - Free Report) and Trex (TREX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Boise Cascade and Trex are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BCC has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BCC currently has a forward P/E ratio of 2.86, while TREX has a forward P/E of 25.22. We also note that BCC has a PEG ratio of 1.25. 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. TREX currently has a PEG ratio of 6.82.
Another notable valuation metric for BCC is its P/B ratio of 1.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TREX has a P/B of 7.77.
These metrics, and several others, help BCC earn a Value grade of A, while TREX has been given a Value grade of C.
BCC stands above TREX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCC is the superior value option right now.