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West Fraser Timber Co. Ltd. (WFG) Gains As Market Dips: What You Should Know

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West Fraser Timber Co. Ltd. (WFG - Free Report) closed at $92.05 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.1%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Heading into today, shares of the company had gained 2.69% over the past month, lagging the Basic Materials sector's gain of 6.68% and the S&P 500's gain of 3.67% in that time.

West Fraser Timber Co. Ltd. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.78, up 26.46% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for West Fraser Timber Co. Ltd.These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 30.58% higher. West Fraser Timber Co. Ltd. is currently a Zacks Rank #1 (Strong Buy).

Investors should also note West Fraser Timber Co. Ltd.'s current valuation metrics, including its Forward P/E ratio of 5.8. This represents a discount compared to its industry's average Forward P/E of 19.08.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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