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Weyerhaeuser (WY) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Weyerhaeuser (WY - Free Report) closed at $38.94, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.31%. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the timber and paper products company had lost 4.48% over the past month, lagging the Construction sector's gain of 0.15% and the S&P 500's loss of 1.38% in that time.

Wall Street will be looking for positivity from Weyerhaeuser as it approaches its next earnings report date. On that day, Weyerhaeuser is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 22.63%. Meanwhile, our latest consensus estimate is calling for revenue of $3.01 billion, down 4.2% from the prior-year quarter.

WY's full-year Zacks Consensus Estimates are calling for earnings of $3.20 per share and revenue of $11.25 billion. These results would represent year-over-year changes of -5.04% and +10.26%, respectively.

Any recent changes to analyst estimates for Weyerhaeuser should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. The Zacks Consensus EPS estimate has moved 7.87% higher within the past month. Weyerhaeuser is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Weyerhaeuser has a Forward P/E ratio of 11.98 right now. Its industry sports an average Forward P/E of 9.58, so we one might conclude that Weyerhaeuser is trading at a premium comparatively.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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