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Louisiana-Pacific (LPX) Rallies to a Fresh 52-Week High
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On Dec 13, shares of Louisiana-Pacific Corporation (LPX - Free Report) rallied to a new 52-week high of $21.16. The stock pulled back to end the trading session at $20.75. The manufacturer of building materials and engineered wood products has a market cap of around $2.96 billion.
Investors view the 52-week high or low as an imperative aspect in determining a stock's momentum.
Shares of Louisiana-Pacific gained over 11%, outperforming the 9.1% rise by the Zacks categorized Building Products-Wood industry in the past one month. Moreover, Louisiana-Pacific’s earnings are expected to register 362.5% growth in 2016.
On Dec 8, the company announced changes to its executive management team, effective Jan 1, 2017. Since then, the stock has attained a 52-week high twice. The new management team can be expected to be productive enough, enhancing the prospects of the company.|
Going forward, Louisiana-Pacific expects housing starts, particularly single family, to continue to grow. Meanwhile, the company's transaction with Norbord will likely boost flexibility to add future siding capacity. Further, continued focus on value-added products will boost over-the-cycle margins.
For 2017, the company expects demand for housing to increase, driven primarily by higher household formations and wage growth. However, because of multiple constraints, labor, adequate lots, regulatory cost and timing, the growth rate in housing is expected to be between 5% and 10%.
Zacks Rank & Key Picks
Louisiana-Pacific carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. (HOV - Free Report) and AAON, Inc. (AAON - Free Report) .
Gibraltar sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Louisiana-Pacific (LPX) Rallies to a Fresh 52-Week High
On Dec 13, shares of Louisiana-Pacific Corporation (LPX - Free Report) rallied to a new 52-week high of $21.16. The stock pulled back to end the trading session at $20.75. The manufacturer of building materials and engineered wood products has a market cap of around $2.96 billion.
Investors view the 52-week high or low as an imperative aspect in determining a stock's momentum.
Shares of Louisiana-Pacific gained over 11%, outperforming the 9.1% rise by the Zacks categorized Building Products-Wood industry in the past one month. Moreover, Louisiana-Pacific’s earnings are expected to register 362.5% growth in 2016.
On Dec 8, the company announced changes to its executive management team, effective Jan 1, 2017. Since then, the stock has attained a 52-week high twice. The new management team can be expected to be productive enough, enhancing the prospects of the company.|
Going forward, Louisiana-Pacific expects housing starts, particularly single family, to continue to grow. Meanwhile, the company's transaction with Norbord will likely boost flexibility to add future siding capacity. Further, continued focus on value-added products will boost over-the-cycle margins.
For 2017, the company expects demand for housing to increase, driven primarily by higher household formations and wage growth. However, because of multiple constraints, labor, adequate lots, regulatory cost and timing, the growth rate in housing is expected to be between 5% and 10%.
Zacks Rank & Key Picks
Louisiana-Pacific carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc. (ROCK - Free Report) , Hovnanian Enterprises Inc. (HOV - Free Report) and AAON, Inc. (AAON - Free Report) .
Gibraltar sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>