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

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In the latest trading session, Boise Cascade (BCC - Free Report) closed at $75.44, marking a -1.4% move from the previous day. This change lagged the S&P 500's daily loss of 0.88%. Elsewhere, the Dow lost 0.73%, while the tech-heavy Nasdaq lost 4.59%.

Heading into today, shares of the engineered wood products and plywood company had gained 8.71% over the past month, outpacing the Construction sector's gain of 8.11% and the S&P 500's gain of 5.83% in that time.

Investors will be hoping for strength from Boise Cascade as it approaches its next earnings release, which is expected to be February 22, 2023. On that day, Boise Cascade is projected to report earnings of $2.97 per share, which would represent a year-over-year decline of 30.28%. Our most recent consensus estimate is calling for quarterly revenue of $1.82 billion, up 2.28% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Boise Cascade. Recent revisions tend to reflect the latest near-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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Boise Cascade currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Boise Cascade is currently trading at a Forward P/E ratio of 8.77. This valuation marks a discount compared to its industry's average Forward P/E of 23.45.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 6% 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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