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Are Investors Undervaluing Boise Cascade (BCC) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Boise Cascade (BCC - Free Report) is a stock many investors are watching right now. BCC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 18.56. This compares to its industry's average Forward P/E of 50.63. BCC's Forward P/E has been as high as 20.07 and as low as 10.67, with a median of 14.06, all within the past year.

Investors should also note that BCC holds a PEG ratio of 2.24. 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. BCC's industry currently sports an average PEG of 3.54. Within the past year, BCC's PEG has been as high as 2.50 and as low as 1.65, with a median of 2.04.

We should also highlight that BCC has a P/B ratio of 2.02. 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. BCC's current P/B looks attractive when compared to its industry's average P/B of 3.02. Within the past 52 weeks, BCC's P/B has been as high as 2.12 and as low as 1.27, with a median of 1.61.

These are just a handful of the figures considered in Boise Cascade's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BCC is an impressive value stock right now.

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