12 Best Land and Timber Stocks to Buy According to Analysts

6. Boise Cascade Company (NYSE:BCC)

Average Price Target Upside Potential According to Analysts: 22.02%

Number of Hedge Fund Holders: 29

Boise Cascade Company (NYSE:BCC) is a significant player in the North American lumber industry, specializing in engineered wood products and plywood. The company is committed to managing forests responsibly as it relies heavily on timber from forests to produce its products. It also serves as a major wholesale distributor of building materials for both residential and commercial construction.

In the third quarter of 2024, Boise Cascade Company (NYSE:BCC) reported sales of $1.7 billion, down from $1.8 billion in the same period last year. Net income also decreased to $91 million compared to $143.1 million in Q3 2023. This decline reflects a challenging market, with total US housing starts down by 3% and single-family starts down by 1% year-over-year compared to Q3 2024. In the face of market pressures, Boise Cascade Company (NYSE:BCC) has shown resilience by adapting to moderate demand conditions.

In the first three quarters of 2024, Boise Cascade Company (NYSE:BCC) returned $220.5 million to shareholders through dividends and repurchased over 1.2 million shares of its common stock for $158.5 million. This commitment to returning capital demonstrates confidence in its long-term prospects.

On December 10, 2024, the company announced the acquisition of the Parksite door shop in Lakeland, Florida. This strategic move is aimed at expanding the company’s millwork operations to 15 locations and enhancing its product offerings in the state of Florida. Boise Cascade Company’s (NYSE:BCC) focus on strategic investments and shareholder returns positions it well for future growth. The company’s ability to navigate a challenging market while maintaining strong financial practices makes it an attractive stock.