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Louisiana-Pacific (LPX) Increases Despite Market Slip: Here's What You Need to Know

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In the latest market close, Louisiana-Pacific (LPX - Free Report) reached $98.66, with a +0.65% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq depreciated by 0.56%.

The home construction supplier's stock has dropped by 9.58% in the past month, falling short of the Construction sector's gain of 1.4% and the S&P 500's gain of 1.83%.

The investment community will be paying close attention to the earnings performance of Louisiana-Pacific in its upcoming release. The company is slated to reveal its earnings on November 5, 2024. The company's earnings per share (EPS) are projected to be $0.88, reflecting a 45.68% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $699.7 million, indicating a 3.89% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.12 per share and a revenue of $2.9 billion, indicating changes of +59.01% and +12.54%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.49% rise in the Zacks Consensus EPS estimate. Louisiana-Pacific is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Louisiana-Pacific's current valuation metrics, including its Forward P/E ratio of 19.16. This represents a discount compared to its industry's average Forward P/E of 21.74.

One should further note that LPX currently holds a PEG ratio of 4.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Wood industry had an average PEG ratio of 2.69.

The Building Products - Wood industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 39% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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