This move could help protect your portfolio from volatility as stocks trade near their highs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2024
0mins
Source: CNBC
- Stock Market Performance in 2024: S&P 500 and Nasdaq Composite are up more than 6%, Dow Jones Industrial Average has advanced nearly 3%.
- Importance of Rebalancing Portfolios: Oversized gains can throw asset allocations off balance, necessitating rebalancing to manage risk during market downturns.
- Strategies for Rebalancing: Financial advisors recommend rebalancing portfolios quarterly or annually, considering asset allocation, and goals.
- Tax Considerations: Investors should be tax-aware when selling highly appreciated holdings and consider donating stocks to charity to claim deductions.
- Where to Redeploy Funds: Advisors suggest looking into dividend payers, small and midcap stocks, cybersecurity sector, and reassessing fixed income exposure for growth potential and stability.
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Analyst Views on BCC
Wall Street analysts forecast BCC stock price to rise
3 Analyst Rating
2 Buy
0 Hold
1 Sell
Moderate Buy
Current: 71.560
Low
81.00
Averages
89.33
High
95.00
Current: 71.560
Low
81.00
Averages
89.33
High
95.00
About BCC
Boise Cascade Company is a United States wholesale distributor of building materials and a manufacturer of engineered wood products (EWP) and plywood in North America. The Company’s segments include Building Materials Distribution and Wood Products. Building Materials Distribution segment (BMD) operates a nationwide network of distribution facilities that sell a broad line of building materials, including oriented strand board (OSB), plywood, and lumber; general line items such as siding, composite decking, doors and millwork, metal products, roofing, and insulation, and EWP. Wood Products segment manufactures laminated veneer lumber (LVL), I-joists, and laminated beams. It manufactures structural, appearance, and industrial grade plywood panels, and ponderosa pine lumber. Its products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, and other industrial applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Reasons to Avoid Boise Cascade and Alternative Stock Suggestions
- Weak Revenue Growth: Boise Cascade's trailing 12-month sales of $6.37 billion are nearly flat compared to five years ago, indicating a lack of long-term revenue growth that fails to meet the standards of a high-quality business, which may lead to investor skepticism about its future performance.
- Declining Free Cash Flow: The company's free cash flow margin has dropped by 7.5 percentage points over the past five years, currently at breakeven, suggesting poor management of operating and capital expenditures, which could hinder future investment capacity and shareholder returns.
- Decreasing Return on Invested Capital: Boise Cascade's return on invested capital (ROIC) has significantly declined, reflecting management's inability to generate sufficient profitable growth opportunities from past investments, potentially exposing the company to greater financial risks.
- Poor Market Performance: Despite a forward P/E of 17.4 and a stock price of $72.09, the company's shaky fundamentals have led to underperformance in the market, prompting investors to consider more promising alternative investments.
See More
Concentric Capital Reduces Boise Cascade Holdings
- Share Reduction Details: Concentric Capital Strategies disclosed a sale of 336,881 shares of Boise Cascade in Q1 2026, valued at approximately $26.99 million, indicating a potential shift in confidence towards the company.
- Asset Allocation Shift: Following the sale, Boise Cascade now represents only 0.56% of Concentric Capital's 13F reportable assets, highlighting a significant reduction in its importance within the fund's portfolio.
- Financial Performance Decline: Boise Cascade reported a 2% decline in Q1 sales to $1.5 billion and a 56% drop in net income to $17.8 million, primarily due to soft demand and rising costs, reflecting the challenges faced by the company in the current market.
- Future Outlook: Despite the challenging market conditions, Boise Cascade's CEO noted that the company's integrated model provides a competitive edge during uncertain times, and long-term, the undersupplied housing market may drive sustained demand for the company’s products.
See More
Concentric Capital Reduces Boise Cascade Stake
- Share Reduction Transaction: Concentric Capital Strategies sold 336,881 shares of Boise Cascade last quarter, with an estimated trade value of $26.99 million, indicating a potential decrease in confidence regarding the company's future prospects.
- Decline in Stake Value: The value of the stake at quarter-end dropped by $24.60 million due to both the sale and stock price movements, reflecting a challenging market environment impacting Boise Cascade's asset allocation.
- Financial Performance Decline: Boise Cascade reported a 2% drop in first-quarter sales to $1.5 billion, while net income plummeted 56% to $17.8 million, highlighting the pressures from rising costs and weakened demand.
- Cautious Future Outlook: Despite the current adverse market conditions, Boise Cascade's management remains optimistic about the company's integrated model's resilience during uncertainty, maintaining $733.8 million in liquidity and continuing stock buybacks to reward shareholders.
See More
Boise Cascade Q1 2026 Earnings Call Insights
- Sales Performance Review: Boise Cascade reported Q1 sales of $1.5 billion and net income of $17.8 million, translating to earnings per share of $0.50, demonstrating resilience amid demand uncertainty driven by geopolitical events and severe weather.
- Cost Pressure Analysis: BMD's sales were $1.4 billion, down 1% year-over-year, with EBITDA at $48.2 million, primarily impacted by an $8.2 million increase in selling and distribution expenses and a $6.5 million decrease in gross margin dollars, reflecting intensified market competition.
- Future Outlook: Management guided Q2 EBITDA ranges of $65 million to $80 million for BMD and $32 million to $47 million for Wood Products, indicating cautious optimism regarding market demand while acknowledging ongoing uncertainties.
- Capital Allocation Update: Q1 capital expenditures totaled $40 million, with dividends of $10 million and share repurchases of approximately $66 million, leaving about $148 million remaining under authorization, highlighting the company's commitment to maintaining financial flexibility while returning value to shareholders.
See More
Boise Cascade (BCC) Q1 2026 Earnings Transcript
See More
Boise Cascade (BCC) Q1 2025 Earnings Transcript
See More
Reasons to Avoid Boise Cascade and Alternative Stock Suggestions
- Weak Revenue Growth: Boise Cascade's trailing 12-month sales of $6.37 billion are nearly flat compared to five years ago, indicating a lack of long-term revenue growth that fails to meet the standards of a high-quality business, which may lead to investor skepticism about its future performance.
- Declining Free Cash Flow: The company's free cash flow margin has dropped by 7.5 percentage points over the past five years, currently at breakeven, suggesting poor management of operating and capital expenditures, which could hinder future investment capacity and shareholder returns.
- Decreasing Return on Invested Capital: Boise Cascade's return on invested capital (ROIC) has significantly declined, reflecting management's inability to generate sufficient profitable growth opportunities from past investments, potentially exposing the company to greater financial risks.
- Poor Market Performance: Despite a forward P/E of 17.4 and a stock price of $72.09, the company's shaky fundamentals have led to underperformance in the market, prompting investors to consider more promising alternative investments.
See More
Concentric Capital Reduces Boise Cascade Holdings
- Share Reduction Details: Concentric Capital Strategies disclosed a sale of 336,881 shares of Boise Cascade in Q1 2026, valued at approximately $26.99 million, indicating a potential shift in confidence towards the company.
- Asset Allocation Shift: Following the sale, Boise Cascade now represents only 0.56% of Concentric Capital's 13F reportable assets, highlighting a significant reduction in its importance within the fund's portfolio.
- Financial Performance Decline: Boise Cascade reported a 2% decline in Q1 sales to $1.5 billion and a 56% drop in net income to $17.8 million, primarily due to soft demand and rising costs, reflecting the challenges faced by the company in the current market.
- Future Outlook: Despite the challenging market conditions, Boise Cascade's CEO noted that the company's integrated model provides a competitive edge during uncertain times, and long-term, the undersupplied housing market may drive sustained demand for the company’s products.
See More
Concentric Capital Reduces Boise Cascade Stake
- Share Reduction Transaction: Concentric Capital Strategies sold 336,881 shares of Boise Cascade last quarter, with an estimated trade value of $26.99 million, indicating a potential decrease in confidence regarding the company's future prospects.
- Decline in Stake Value: The value of the stake at quarter-end dropped by $24.60 million due to both the sale and stock price movements, reflecting a challenging market environment impacting Boise Cascade's asset allocation.
- Financial Performance Decline: Boise Cascade reported a 2% drop in first-quarter sales to $1.5 billion, while net income plummeted 56% to $17.8 million, highlighting the pressures from rising costs and weakened demand.
- Cautious Future Outlook: Despite the current adverse market conditions, Boise Cascade's management remains optimistic about the company's integrated model's resilience during uncertainty, maintaining $733.8 million in liquidity and continuing stock buybacks to reward shareholders.
See More
Boise Cascade Q1 2026 Earnings Call Insights
- Sales Performance Review: Boise Cascade reported Q1 sales of $1.5 billion and net income of $17.8 million, translating to earnings per share of $0.50, demonstrating resilience amid demand uncertainty driven by geopolitical events and severe weather.
- Cost Pressure Analysis: BMD's sales were $1.4 billion, down 1% year-over-year, with EBITDA at $48.2 million, primarily impacted by an $8.2 million increase in selling and distribution expenses and a $6.5 million decrease in gross margin dollars, reflecting intensified market competition.
- Future Outlook: Management guided Q2 EBITDA ranges of $65 million to $80 million for BMD and $32 million to $47 million for Wood Products, indicating cautious optimism regarding market demand while acknowledging ongoing uncertainties.
- Capital Allocation Update: Q1 capital expenditures totaled $40 million, with dividends of $10 million and share repurchases of approximately $66 million, leaving about $148 million remaining under authorization, highlighting the company's commitment to maintaining financial flexibility while returning value to shareholders.
See More
Boise Cascade (BCC) Q1 2026 Earnings Transcript
See More
Boise Cascade (BCC) Q1 2025 Earnings Transcript
See More
