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Weyerhaeuser (WY) Dips More Than Broader Markets: What You Should Know

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Weyerhaeuser (WY - Free Report) closed at $34.87 in the latest trading session, marking a -1.36% move from the prior day. This move lagged the S&P 500's daily loss of 0.46%.

Coming into today, shares of the timber and paper products company had gained 0.06% in the past month. In that same time, the Construction sector gained 0.08%, while the S&P 500 gained 1.93%.

Wall Street will be looking for positivity from WY as it approaches its next earnings report date. The company is expected to report EPS of $0.69, up 32.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.36 billion, up 11.61% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $10.11 billion, which would represent changes of +161.24% and +34.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for WY. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.32% lower. WY is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, WY is currently trading at a Forward P/E ratio of 10.49. Its industry sports an average Forward P/E of 13.07, so we one might conclude that WY 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 93, putting it in the top 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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