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Should Value Investors Buy Boise Cascade (BCC) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Boise Cascade (BCC - Free Report) is a stock many investors are watching right now. BCC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.09, which compares to its industry's average of 25.47. Over the past year, BCC's Forward P/E has been as high as 11.14 and as low as 3.13, with a median of 7.59.
Another valuation metric that we should highlight is BCC's P/B ratio of 1.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.36. Over the past year, BCC's P/B has been as high as 1.67 and as low as 1.12, with a median of 1.37.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCC has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.19.
Finally, investors will want to recognize that BCC has a P/CF ratio of 4.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.31. BCC's P/CF has been as high as 4.71 and as low as 2.33, with a median of 2.92, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Boise Cascade is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCC feels like a great value stock at the moment.
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Should Value Investors Buy Boise Cascade (BCC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Boise Cascade (BCC - Free Report) is a stock many investors are watching right now. BCC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.09, which compares to its industry's average of 25.47. Over the past year, BCC's Forward P/E has been as high as 11.14 and as low as 3.13, with a median of 7.59.
Another valuation metric that we should highlight is BCC's P/B ratio of 1.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.36. Over the past year, BCC's P/B has been as high as 1.67 and as low as 1.12, with a median of 1.37.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCC has a P/S ratio of 0.47. This compares to its industry's average P/S of 1.19.
Finally, investors will want to recognize that BCC has a P/CF ratio of 4.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.31. BCC's P/CF has been as high as 4.71 and as low as 2.33, with a median of 2.92, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Boise Cascade is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCC feels like a great value stock at the moment.