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Louisiana-Pacific (LPX) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Louisiana-Pacific (LPX - Free Report) closed at $64.51, marking a -1.53% move from the previous day. This change lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.

Prior to today's trading, shares of the home construction supplier had lost 0.98% over the past month. This has lagged the Construction sector's gain of 2% and the S&P 500's gain of 5.51% in that time.

Louisiana-Pacific will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.30, up 42.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.18 billion, up 16.03% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.87 per share and revenue of $4.27 billion. These totals would mark changes of -15.03% and -6.3%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 28.94% higher. Louisiana-Pacific is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Louisiana-Pacific currently has a Forward P/E ratio of 5.52. This represents a discount compared to its industry's average Forward P/E of 13.59.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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