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UFP Industries (UFPI) Gains As Market Dips: What You Should Know

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UFP Industries (UFPI - Free Report) closed the most recent trading day at $104.35, moving +0.07% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.11%.

Prior to today's trading, shares of the wood and materials provider for the construction industry had gained 1.82% over the past month. This has outpaced the Construction sector's loss of 1.62% and the S&P 500's loss of 1.25% in that time.

Wall Street will be looking for positivity from UFP Industries as it approaches its next earnings report date. The company is expected to report EPS of $2.13, down 19.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.04 billion, down 12.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.26 per share and revenue of $7.83 billion, which would represent changes of -24.7% and -18.71%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for UFP Industries. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.81% lower. UFP Industries is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, UFP Industries is currently trading at a Forward P/E ratio of 12.63. This valuation marks a discount compared to its industry's average Forward P/E of 18.36.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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