Back to top

Image: Bigstock

Is LouisianaPacific (LPX) Stock Outpacing Its Construction Peers This Year?

Read MoreHide Full Article

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Louisiana-Pacific (LPX - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Louisiana-Pacific is one of 88 companies in the Construction group. The Construction group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Louisiana-Pacific is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for LPX's full-year earnings has moved 9.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, LPX has returned 63.6% so far this year. Meanwhile, stocks in the Construction group have gained about 27.7% on average. This means that Louisiana-Pacific is outperforming the sector as a whole this year.

Trane Technologies (TT - Free Report) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 71.2%.

In Trane Technologies' case, the consensus EPS estimate for the current year increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Louisiana-Pacific belongs to the Building Products - Wood industry, a group that includes 8 individual stocks and currently sits at #203 in the Zacks Industry Rank. On average, this group has gained an average of 15.6% so far this year, meaning that LPX is performing better in terms of year-to-date returns.

Trane Technologies, however, belongs to the Building Products - Air Conditioner and Heating industry. Currently, this 5-stock industry is ranked #57. The industry has moved +60.4% so far this year.

Louisiana-Pacific and Trane Technologies could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


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


Louisiana-Pacific Corporation (LPX) - free report >>

Trane Technologies plc (TT) - free report >>

Published in