Price to Earnings Ratio under Consideration – Boise Cascade Company (NYSE: BCC)

U.S. stocks closed little changed Tuesday after President Donald Trump and North Korea leader Kim Jong Un signed a contract aimed at establishing a “peace regime” on the Korean peninsula and better relations between the two states.

Lack of detail in the agreement about the path to denuclearization on the peninsula kept the market’s moves in check throughout the day.

The Dow Jones industrial average finished 1.58 points lower at 25,320.73, weighed down by losses in Travelers Companies and Goldman Sachs. The S&P 500 closed 0.17 percent higher to 2,786.85 assisted by utilities, which ended the day 1.3 percent higher.

The Nasdaq composite closed 0.57 percent higher at 7,703.79 thanks to upticks in Facebook, Apple, Amazon, Netflix and Google-parent Alphabet.

Trump said the sanctions will remain on Pyongyang until “the menace of nuclear weapons” is gone. Japan’s Nikkei 225 finished 0.33 percent higher on hopes for greater peace in the region.

AT&T shares ended the trading day 0.5 percent higher ahead of U.S. District Court Judge Richard Leon’s decision on whether to permit its $85 billion deal for Time Warner. While the government or AT&T could appeal Leon’s decision, the ruling will have far-reaching implications for dealmaking across the telecommunications and media world.

Several other players in the industries, counting Twenty-First Century Fox and Disney, are actively pursuing deals of their own; others, like Verizon, could interpret the ruling as a go-ahead to buy a large content company to compete with AT&T.

Shareholders are also awaiting the culmination of the U.S. Federal Reserve’s two-day meeting, set to conclude on Wednesday.

U.S. Treasurys yields rose following the report, with the benchmark 10-year note rate at 2.966 percent. The U.S. dollar index, which compares the greenback against a host of foreign currencies, rose 0.25 percent. (Source: CNBC)

Stock to Watch: Boise Cascade Company (NYSE: BCC)

On Tuesday, Shares of Boise Cascade Company (NYSE: BCC) -1.77% and ended its trading session at $47.25. The company saw 567,934 shares trade hands over the course of the day. Given that its average daily volume over the 30 days has been 375.47K shares a day, this signifies a pretty noteworthy change over the norm.

Technical Analysis:

The analysts, on average, are forecasting a $44.00 price target, but the individual stock is already up 71.20% from its recent lows. However, the stock is trading at -4.16% as compared to recent highs. Leading up to this report, we have seen a 8.50% return in the stock price over the last 30 days and a 15.81% return over the past 3 months. Since the starting of the calendar year, the stock’s performance is recorded at 18.42%.

The stock price recently practiced a 5-day change of -3.57% with 1.14 as average true range (ATR). BCC has a beta of 1.99 and RSI is 59.16. The stock declared an annual dividend of $0.59% per share.

Introduction to Net Income & Its Uses in Most Important Indicators:

Income is money received by an individual or business in exchange for supplying a good or service or through investing capital. Income is consumed to fuel day-to-day expenditures. In businesses, income can refer to a company’s remaining revenues after all expenses and taxes have been paid. In this case, it is also known as “earnings”. Most forms of income are subject to taxation.

However, Net income (NI) is a corporation’s total earnings (or profit); net income is computed by taking revenues and subtracting the costs of doing business such as depreciation, interest, taxes and other expenses. This number appears on a company’s income statement and is an important measure of how profitable the company is over a period of time.

Role of Net Income in Calculating EPS:

Businesses use net income to calculate their earnings per share (EPS). Business analysts often refer to net income to as the bottom line, since it is listed at the bottom of the income statement. In the United Kingdom, NI is known as profit attributable to shareholders. To know the company’s net income – refer to this link: http://finviz.com. Boise Cascade Company (NYSE: BCC) is a stock with 39.27M shares outstanding. As the earnings per share (EPS) formula is stated as earnings available to common shareholders divided by number of common stock shares outstanding, therefore its diluted EPS is calculated to be 2.60 (ttm). EPS is an indicator of company profit because the more earnings a company can generate per share, the more valuable each share is to shareholders.

A key aspect of EPS that’s often overlooked is the capital that is required to generate the earnings (net income) in the calculation. Two companies could generate the same EPS number, but one could do so with less equity (investment) – that company would be more efficient at using its capital to generate income and, all other things being equal would be a “better” company. Shareholders also need to be aware of earnings manipulation that will affect the quality of the earnings number. It is important not to rely on any one financial measure, but to use it in conjunction with statement analysis and other measures.

Role of EPS in Calculating Price to Earnings Ratio (P/E):

Earnings per share are generally pondered to be the single most essential variable in determining a share’s price. It is also a key component used to calculate the price-to-earnings valuation (P/E) ratio.

Analysts also use the price-to-earnings (P/E) ratio for stock valuation, which is calculated as market price per share ($47.25) divided by EPS (2.60). Price to earnings ratio (P/E) for BCC stock is recorded at $18.20. The P/E ratio calculates how expensive a stock price is relative to the earnings produced per share. For example, if the P/E ratio of a stock is 20 times earnings, an analyst compares that P/E ratio to other companies in the same industry and to the ratio for the broader market.

Analysts’ Recommendation to Consider:

Analysts have a mean recommendation of 2.70 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within the 4 range, and “strong sell” within the 5 range).

Disclaimer: Any news, report, research, and analysis published on Stocksmarketcap.com are only for information purposes. Stocks Market Cap (SMC) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument unless that information is subsequently confirmed on your own. Information in this release is fact checked and produced by competent editors of Stocks Market Cap; however, human error can exist.

Chad Pitman

Chad Pitman

I am Chad Pitman and I focus on breaking news stories and ensuring we (“Stocks Market Cap”) offer timely reporting on some of the most recent stories released through market wires about “Emerging Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for stocksmarketcap.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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