Back to top

Image: Bigstock

UFP Industries (UFPI) Suffers a Larger Drop Than the General Market: Key Insights

Read MoreHide Full Article

The latest trading session saw UFP Industries (UFPI - Free Report) ending at $118.42, denoting a -1.23% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.72%. At the same time, the Dow lost 1%, and the tech-heavy Nasdaq lost 0.95%.

The wood and materials provider for the construction industry's shares have seen an increase of 3.67% over the last month, not keeping up with the Construction sector's gain of 3.79% and outstripping the S&P 500's gain of 2.16%.

The upcoming earnings release of UFP Industries will be of great interest to investors. The company is forecasted to report an EPS of $1.61, showcasing a 18.69% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.69 billion, showing a 7.07% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.39 per share and a revenue of $7.15 billion, demonstrating changes of -8.43% and -0.93%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for UFP Industries. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.83% lower. As of now, UFP Industries holds a Zacks Rank of #3 (Hold).

In the context of valuation, UFP Industries is at present trading with a Forward P/E ratio of 16.22. For comparison, its industry has an average Forward P/E of 28.04, which means UFP Industries is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank is ordered 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


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


UFP Industries, Inc. (UFPI) - free report >>

Published in