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UFP Industries (UFPI) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, UFP Industries (UFPI - Free Report) closed at $101.32, marking a +0.67% move from the previous day. This change outpaced the S&P 500's 0.63% gain on the day. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.39%.

Coming into today, shares of the wood and materials provider for the construction industry had lost 0.76% in the past month. In that same time, the Construction sector lost 6.52%, while the S&P 500 lost 3.39%.

The investment community will be paying close attention to the earnings performance of UFP Industries in its upcoming release. In that report, analysts expect UFP Industries to post earnings of $2.13 per share. This would mark a year-over-year decline of 19.92%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.04 billion, indicating a 12.35% decrease compared to the same quarter of the previous year.

UFPI's full-year Zacks Consensus Estimates are calling for earnings of $8.26 per share and revenue of $7.82 billion. These results would represent year-over-year changes of -24.7% and -18.78%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for UFP Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UFP Industries is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, UFP Industries is presently trading at a Forward P/E ratio of 12.19. This indicates a discount in contrast to its industry's Forward P/E of 15.25.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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