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Weyerhaeuser (WY) Gains As Market Dips: What You Should Know

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Weyerhaeuser (WY - Free Report) closed at $35.69 in the latest trading session, marking a +1.86% move from the prior day. This change outpaced the S&P 500's 0.16% loss on the day.

Coming into today, shares of the timber and paper products company had gained 3.67% in the past month. In that same time, the Construction sector lost 3.05%, while the S&P 500 gained 0.46%.

Investors will be hoping for strength from WY as it approaches its next earnings release. 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.

Any recent changes to analyst estimates for WY should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 1.32% lower. WY currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that WY has a Forward P/E ratio of 10.4 right now. This represents a discount compared to its industry's average Forward P/E of 12.69.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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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