Boise Cascade (BCC) shares fall as market gains: What you need to know
This story originally appeared on Zacks
In the last trading session, Boise Cascade (BCC) closed at $70.22, marking a -1.18% move from the previous day. This change lagged the S&P 500’s 1.89% gain on the day. Meanwhile, the Dow Jones gained 1.17% and the Nasdaq, a technology-heavy index, added 0.75%.
Prior to today’s trading, shares of the engineered wood products and plywood company were down 0.2% in the past month. That was narrower than the construction sector’s loss of 13.61% and the S&P 500’s loss of 7.36% during that time.
Boise Cascade will be looking to show strength heading into its next earnings release. On that day, Boise Cascade is expected to report earnings of $2.48 per share, which would represent 40.91% year-over-year growth.
Investors might also notice recent changes in analyst estimates for Boise Cascade. These revisions help show the ever-changing nature of short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable, externally audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate rose 10.58% in the month last. Boise Cascade is currently a Zacks Rank #1 (Strong Buy).
As for its valuation, Boise Cascade holds a Forward P/E ratio of 7.68. By comparison, its industry has an average Forward P/E of 17.37, meaning Boise Cascade is trading at a discount to the group.
Additionally, it is worth mentioning that BCC has a PEG ratio of 3.35. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. Construction Products – Wood inventories hold, on average, a PEG ratio of 2.32 based on yesterday’s closing prices.
The Building Products – Wood sector is part of the Construction sector. This group has a Zacks industry ranking of 15, which places it in the top 6% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.
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