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West Fraser Timber Co. Ltd. (WFG) Gains As Market Dips: What You Should Know

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In the latest trading session, West Fraser Timber Co. Ltd. (WFG - Free Report) closed at $76.73, marking a +1.33% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Prior to today's trading, shares of the company had lost 16.8% over the past month. This has lagged the Basic Materials sector's loss of 12.25% and the S&P 500's loss of 0.62% in that time.

Wall Street will be looking for positivity from West Fraser Timber Co. Ltd. as it approaches its next earnings report date. In that report, analysts expect West Fraser Timber Co. Ltd. to post earnings of $8.17 per share. This would mark a year-over-year decline of 33.69%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.11 per share and revenue of $8.45 billion. These totals would mark changes of +4% and -19.67%, respectively, from last year.

Any recent changes to analyst estimates for West Fraser Timber Co. Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. West Fraser Timber Co. Ltd. is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that West Fraser Timber Co. Ltd. has a Forward P/E ratio of 2.69 right now. This represents a discount compared to its industry's average Forward P/E of 12.73.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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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