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BCC vs. TREX: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Building Products - Wood stocks have likely encountered both Boise Cascade (BCC - Free Report) and Trex (TREX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Boise Cascade has a Zacks Rank of #2 (Buy), while Trex has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BCC has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BCC currently has a forward P/E ratio of 3.19, while TREX has a forward P/E of 28.44. We also note that BCC has a PEG ratio of 1.39. 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. TREX currently has a PEG ratio of 7.69.
Another notable valuation metric for BCC is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TREX has a P/B of 8.71.
These metrics, and several others, help BCC earn a Value grade of A, while TREX has been given a Value grade of F.
BCC has seen stronger estimate revision activity and sports more attractive valuation metrics than TREX, so it seems like value investors will conclude that BCC is the superior option right now.
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BCC vs. TREX: Which Stock Should Value Investors Buy Now?
Investors with an interest in Building Products - Wood stocks have likely encountered both Boise Cascade (BCC - Free Report) and Trex (TREX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Boise Cascade has a Zacks Rank of #2 (Buy), while Trex has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BCC has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BCC currently has a forward P/E ratio of 3.19, while TREX has a forward P/E of 28.44. We also note that BCC has a PEG ratio of 1.39. 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. TREX currently has a PEG ratio of 7.69.
Another notable valuation metric for BCC is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TREX has a P/B of 8.71.
These metrics, and several others, help BCC earn a Value grade of A, while TREX has been given a Value grade of F.
BCC has seen stronger estimate revision activity and sports more attractive valuation metrics than TREX, so it seems like value investors will conclude that BCC is the superior option right now.