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Boise Cascade Company (NYSE:BCC), is not the largest company out there, but it saw a decent share price growth of 19% on the NYSE over the last few months. The company is inching closer to its yearly highs following the recent share price climb. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Boise Cascade’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Boise Cascade
Is Boise Cascade Still Cheap?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 4.7% below our intrinsic value, which means if you buy Boise Cascade today, you’d be paying a fair price for it. And if you believe that the stock is really worth $138.06, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Boise Cascade’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Boise Cascade look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Boise Cascade, it is expected to deliver a negative earnings growth of -6.9%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? Currently, BCC appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on BCC for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on BCC should the price fluctuate below its true value.