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Potlatch (PCH) Dips More Than Broader Markets: What You Should Know

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Potlatch (PCH - Free Report) closed the most recent trading day at $51.95, moving -0.99% from the previous trading session. This move lagged the S&P 500's daily loss of 0.14%.

Coming into today, shares of the timberland owner and wood products company had gained 1.9% in the past month. In that same time, the Construction sector gained 3.24%, while the S&P 500 gained 3.13%.

Wall Street will be looking for positivity from PCH as it approaches its next earnings report date. In that report, analysts expect PCH to post earnings of $1.07 per share. This would mark a year-over-year decline of 10.83%. Meanwhile, our latest consensus estimate is calling for revenue of $288.8 million, down 7.75% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.56 per share and revenue of $1.36 billion, which would represent changes of +123.13% and +30.72%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for PCH. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 5.16% lower within the past month. PCH currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, PCH is holding a Forward P/E ratio of 8. Its industry sports an average Forward P/E of 13.93, so we one might conclude that PCH is trading at a discount comparatively.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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