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

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Louisiana-Pacific (LPX - Free Report) closed at $61.72 in the latest trading session, marking a -0.64% move from the prior day. This move lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the home construction supplier had lost 13.36% in the past month. In that same time, the Construction sector lost 3.13%, while the S&P 500 gained 3.75%.

Wall Street will be looking for positivity from Louisiana-Pacific as it approaches its next earnings report date. In that report, analysts expect Louisiana-Pacific to post earnings of $1.79 per share. This would mark a year-over-year decline of 40.53%. 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 $12.43 per share and revenue of $4.27 billion. These totals would mark changes of -11.02% and -6.3%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Louisiana-Pacific. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.78% higher. Louisiana-Pacific is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Louisiana-Pacific's current valuation metrics, including its Forward P/E ratio of 5. Its industry sports an average Forward P/E of 12.22, so we one might conclude that Louisiana-Pacific is trading at a discount comparatively.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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