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Is Boise Cascade (BCC) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Boise Cascade (BCC - Free Report) . BCC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 16.06, while its industry has an average P/E of 24.44. Over the past year, BCC's Forward P/E has been as high as 16.13 and as low as 10.09, with a median of 13.13.

Investors should also note that BCC holds a PEG ratio of 2.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BCC's industry has an average PEG of 3.27 right now. Over the last 12 months, BCC's PEG has been as high as 2.50 and as low as 0.92, with a median of 1.89.

Another valuation metric that we should highlight is BCC's P/B ratio of 1.75. 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. This company's current P/B looks solid when compared to its industry's average P/B of 2.45. BCC's P/B has been as high as 2.36 and as low as 1.15, with a median of 1.56, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Boise Cascade is likely undervalued currently. And when considering the strength of its earnings outlook, BCC sticks out at as one of the market's strongest value stocks.


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