Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Louisiana-Pacific (LPX - Free Report) closed at $57.51, marking a -0.62% move from the previous day. This change lagged the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.2%.

Prior to today's trading, shares of the home construction supplier had lost 9.9% over the past month. This has lagged the Construction sector's loss of 4.71% and the S&P 500's gain of 3.69% in that time.

Investors will be hoping for strength from Louisiana-Pacific as it approaches its next earnings release. On that day, Louisiana-Pacific is projected to report earnings of $4.54 per share, which would represent year-over-year growth of 50.83%. Meanwhile, our latest consensus estimate is calling for revenue of $1.18 billion, up 16.03% from the prior-year quarter.

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.

Investors might also notice recent changes to analyst estimates for Louisiana-Pacific. Recent revisions tend to reflect the latest near-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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually 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).

Digging into valuation, Louisiana-Pacific currently has a Forward P/E ratio of 4.65. For comparison, its industry has an average Forward P/E of 11.78, which means Louisiana-Pacific is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

LouisianaPacific Corporation (LPX) - free report >>

Published in