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Louisiana-Pacific (LPX) Advances While Market Declines: Some Information for Investors

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The latest trading session saw Louisiana-Pacific (LPX - Free Report) ending at $101.54, denoting a +0.75% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.31%.

Prior to today's trading, shares of the home construction supplier had gained 9.15% over the past month. This has outpaced the Construction sector's gain of 6.37% and the S&P 500's gain of 1.57% in that time.

The investment community will be paying close attention to the earnings performance of Louisiana-Pacific in its upcoming release. In that report, analysts expect Louisiana-Pacific to post earnings of $0.87 per share. This would mark a year-over-year decline of 46.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $722.05 million, down 0.82% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.04 per share and revenue of $2.93 billion. These totals would mark changes of +56.52% and +13.62%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Louisiana-Pacific is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Louisiana-Pacific is currently trading at a Forward P/E ratio of 20. This denotes a discount relative to the industry's average Forward P/E of 26.7.

Investors should also note that LPX has a PEG ratio of 4.68 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Wood stocks are, on average, holding a PEG ratio of 3.49 based on yesterday's closing prices.

The Building Products - Wood industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 223, positioning it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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