We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UFP Industries lands a Zacks Rank #5 (Strong Sell) on the back of its tanking earnings revisions.
Stay away from UNFI stock until there are signs of a turnaround across its end markets?
UFP Industries, Inc. (UFPI - Free Report) is one of the biggest converters of softwood lumber and a top pressure-treater. The stock tanked 30% in the past year as its earnings outlook faded while it struggles against major industry headwinds.
UFP Industries lands a Zacks Rank #5 (Strong Sell) on the back of its tanking earnings revisions.
Why Investors Should Consider Staying Away from UFPI Stock
The Grand Rapids, Michigan-based company designs, manufactures, and sells wood-based products like treated lumber, decking, fencing, and packaging materials. UFP Industries works with customers across construction, retail, industrials, and beyond.
It operates through three main segments: Retail (e.g., outdoor decking and more), Packaging (e.g., custom pallets and beyond), and Construction (e.g., roof trusses, concrete forms, and more), serving big customers in North America's softwood market.
UFP Industries boasts that it is “North America’s largest converter of softwood lumber, and the world’s largest pressure-treater.”
Image Source: Zacks Investment Research
UFP Industries went on a massive run between 2010 and 2022, capped off by a post-Covid boom, boosted by the housing, home improvement, and construction spending spree.
Some of its core markets have changed dramatically since then as mortgage rates soared off their lows. Housing prices and inflation have skyrocketed as well, hitting the housing and construction markets hard.
On top of that, commodity prices are hurting UFP Industries and the broader industry. It is also worth stressing just how much the Covid-era pull forward shocked the Building Products–Wood industry and many other areas tied to housing and construction.
UFPI’s revenue tanked 25% in 2023 and 8% in 2024, while its GAAP earnings fell 27% and 16%, respectively.
The firm missed our Q3 FY25 earnings per share estimate by 6% in late October, marking its fifth straight miss. The firm also provided another round of downbeat guidance, with its FY26 EPS estimate 10% lower.
Image Source: Zacks Investment Research
UFP Industries is projected to see its revenue fall another 4% in 2025 and its adjusted EPS tank 23%. Plus, its negative earnings revisions earn UFPI a Zacks Rank #5 (Strong Sell) and extend its massive downward EPS trend that began in late 2022.
The company’s longer-term outlook likely remains on track since the housing and construction markets are bound to rebound at some point. Plus, UFP Industries pays a dividend and buys back its stock to help return value to shareholders amid its current struggles.
That said, investors likely want to stay away from UFPI stock for now and wait until there are more signs of a turnaround across its various end markets.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: UFP Industries, Inc. (UFPI)
Key Takeaways
UFP Industries, Inc. (UFPI - Free Report) is one of the biggest converters of softwood lumber and a top pressure-treater. The stock tanked 30% in the past year as its earnings outlook faded while it struggles against major industry headwinds.
UFP Industries lands a Zacks Rank #5 (Strong Sell) on the back of its tanking earnings revisions.
Why Investors Should Consider Staying Away from UFPI Stock
The Grand Rapids, Michigan-based company designs, manufactures, and sells wood-based products like treated lumber, decking, fencing, and packaging materials. UFP Industries works with customers across construction, retail, industrials, and beyond.
It operates through three main segments: Retail (e.g., outdoor decking and more), Packaging (e.g., custom pallets and beyond), and Construction (e.g., roof trusses, concrete forms, and more), serving big customers in North America's softwood market.
UFP Industries boasts that it is “North America’s largest converter of softwood lumber, and the world’s largest pressure-treater.”
Image Source: Zacks Investment Research
UFP Industries went on a massive run between 2010 and 2022, capped off by a post-Covid boom, boosted by the housing, home improvement, and construction spending spree.
Some of its core markets have changed dramatically since then as mortgage rates soared off their lows. Housing prices and inflation have skyrocketed as well, hitting the housing and construction markets hard.
On top of that, commodity prices are hurting UFP Industries and the broader industry. It is also worth stressing just how much the Covid-era pull forward shocked the Building Products–Wood industry and many other areas tied to housing and construction.
UFPI’s revenue tanked 25% in 2023 and 8% in 2024, while its GAAP earnings fell 27% and 16%, respectively.
The firm missed our Q3 FY25 earnings per share estimate by 6% in late October, marking its fifth straight miss. The firm also provided another round of downbeat guidance, with its FY26 EPS estimate 10% lower.
Image Source: Zacks Investment Research
UFP Industries is projected to see its revenue fall another 4% in 2025 and its adjusted EPS tank 23%. Plus, its negative earnings revisions earn UFPI a Zacks Rank #5 (Strong Sell) and extend its massive downward EPS trend that began in late 2022.
The company’s longer-term outlook likely remains on track since the housing and construction markets are bound to rebound at some point. Plus, UFP Industries pays a dividend and buys back its stock to help return value to shareholders amid its current struggles.
That said, investors likely want to stay away from UFPI stock for now and wait until there are more signs of a turnaround across its various end markets.