Zacks Investment Research upgraded Boise Cascade Company (BCC) to a Zacks Rank #1 (Strong Buy) on Oct 14, 2014. Going by the Zacks model, companies holding a Zacks Rank #1 have strong chances of performing better than the broader market.
Why the Upgrade?
Boise Cascade Company is highly dependent on the U.S. housing market. The company, capitalizing on the improved operating conditions experienced in second-quarter 2014, reported solid results on Jul 24. Earnings came in at 67 cents per share, beating the Zacks Consensus Estimate of 44 cents.
With housing and remodeling activities regaining momentum in the second quarter, Boise Cascade’s products enjoyed a strong demand. Total and single-family housing starts were up 12% and 4% respectively. The company’s sales volume increased, leading to a 13% year over year rise in revenues.
Better-than-expected results as well as a positive average earnings surprise of 4.10% have made us optimistic about Boise Cascade’s performance in the quarters ahead. Over the last 60 days, the Zacks Consensus Estimate on the stock has climbed 2.2% to $1.84 for 2014 and 0.4% to $2.25 for 2015. These estimates represent year-over-year growth of 53.6% and 22.2% respectively. Also, earnings are expected to grow by 7.5% over the next five years.
Other Stocks to Consider
Boise Cascade Company presently has a $1.1 billion market capitalization. Other stocks worth considering in the building products industry include Weyerhaeuser Co. (WY), Potlatch Corp. (PCH) and Fastenal Co. (FAST). While Weyerhaeuser Company sports a Zacks Rank #1, both Potlatch Corporation and Fastenal Company carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment