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Louisiana-Pacific (LPX) Dips More Than Broader Markets: What You Should Know

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Louisiana-Pacific (LPX - Free Report) closed the most recent trading day at $60.69, moving -1.57% from the previous trading session. This change lagged the S&P 500's 1.21% loss on the day. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.49%.

Coming into today, shares of the home construction supplier had lost 11.99% in the past month. In that same time, the Construction sector lost 2.09%, while the S&P 500 gained 5.85%.

Investors will be hoping for strength from Louisiana-Pacific as it approaches its next earnings release. The company is expected to report EPS of $4.54, up 50.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.21 billion, up 18.49% from the year-ago period.

LPX's full-year Zacks Consensus Estimates are calling for earnings of $13.02 per share and revenue of $4.36 billion. These results would represent year-over-year changes of -6.8% and -4.15%, respectively.

Investors should also note any recent changes to analyst estimates for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 9.75% higher. Louisiana-Pacific is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 4.73 right now. This represents a discount compared to its industry's average Forward P/E of 11.49.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.

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

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