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

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Boise Cascade (BCC - Free Report) closed the most recent trading day at $70.69, moving -0.63% from the previous trading session. This change lagged the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.

Coming into today, shares of the engineered wood products and plywood company had lost 1.19% in the past month. In that same time, the Construction sector gained 3.74%, while the S&P 500 lost 0.01%.

Wall Street will be looking for positivity from Boise Cascade as it approaches its next earnings report date. The company is expected to report EPS of $2.97, down 30.28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.82 billion, up 2.28% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Boise Cascade. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.81% higher within the past month. Boise Cascade currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Boise Cascade has a Forward P/E ratio of 8.15 right now. For comparison, its industry has an average Forward P/E of 20.72, which means Boise Cascade is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% 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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