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UFP Industries (UFPI) Dips More Than Broader Markets: What You Should Know

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UFP Industries (UFPI - Free Report) closed at $71.28 in the latest trading session, marking a -1.68% move from the prior day. This change lagged the S&P 500's daily loss of 1.48%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 3.02%.

Coming into today, shares of the wood and materials provider for the construction industry had gained 19.32% in the past month. In that same time, the Construction sector gained 7.09%, while the S&P 500 gained 1.23%.

Investors will be hoping for strength from UFPI as it approaches its next earnings release. The company is expected to report EPS of $0.90, up 38.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.33 billion, up 29.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.84 per share and revenue of $6.48 billion, which would represent changes of +21% and +25.78%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for UFPI. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 28.12% higher within the past month. UFPI currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, UFPI is currently trading at a Forward P/E ratio of 14.99. This represents a premium compared to its industry's average Forward P/E of 14.93.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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