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Boise Cascade (BCC) Gains As Market Dips: What You Should Know

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In the latest trading session, Boise Cascade (BCC - Free Report) closed at $64.05, marking a +0.08% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.93%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.17%.

Coming into today, shares of the engineered wood products and plywood company had gained 14.82% in the past month. In that same time, the Construction sector gained 10.79%, while the S&P 500 gained 6.31%.

Boise Cascade will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2022. On that day, Boise Cascade is projected to report earnings of $4.64 per share, which would represent a year-over-year decline of 39.11%. Meanwhile, our latest consensus estimate is calling for revenue of $2.52 billion, up 3.27% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.17 per share and revenue of $9.32 billion, which would represent changes of +1.11% and +17.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Boise Cascade. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.39% lower. Boise Cascade is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Boise Cascade has a Forward P/E ratio of 3.52 right now. Its industry sports an average Forward P/E of 8.88, so we one might conclude that Boise Cascade is trading at a discount comparatively.

It is also worth noting that BCC currently has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Wood was holding an average PEG ratio of 1.45 at yesterday's closing price.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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