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Should Value Investors Buy LouisianaPacific (LPX) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is LouisianaPacific (LPX - Free Report) . LPX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.97, which compares to its industry's average of 17.70. Over the past year, LPX's Forward P/E has been as high as 10.97 and as low as 5.59, with a median of 7.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LPX has a P/S ratio of 1.19. This compares to its industry's average P/S of 1.93.
Finally, we should also recognize that LPX has a P/CF ratio of 4.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. LPX's current P/CF looks attractive when compared to its industry's average P/CF of 12.20. Within the past 12 months, LPX's P/CF has been as high as 10.02 and as low as 3.57, with a median of 4.57.
These are just a handful of the figures considered in LouisianaPacific's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LPX is an impressive value stock right now.
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Should Value Investors Buy LouisianaPacific (LPX) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is LouisianaPacific (LPX - Free Report) . LPX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.97, which compares to its industry's average of 17.70. Over the past year, LPX's Forward P/E has been as high as 10.97 and as low as 5.59, with a median of 7.98.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LPX has a P/S ratio of 1.19. This compares to its industry's average P/S of 1.93.
Finally, we should also recognize that LPX has a P/CF ratio of 4.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. LPX's current P/CF looks attractive when compared to its industry's average P/CF of 12.20. Within the past 12 months, LPX's P/CF has been as high as 10.02 and as low as 3.57, with a median of 4.57.
These are just a handful of the figures considered in LouisianaPacific's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LPX is an impressive value stock right now.