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Louisiana-Pacific (LPX) Stock Sinks As Market Gains: Here's Why
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Louisiana-Pacific (LPX - Free Report) closed the most recent trading day at $114.91, moving -0.55% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1% for the day. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.
Prior to today's trading, shares of the home construction supplier had gained 12.03% over the past month. This has outpaced the Construction sector's loss of 3.14% and the S&P 500's loss of 2.14% in that time.
The investment community will be closely monitoring the performance of Louisiana-Pacific in its forthcoming earnings report. The company is expected to report EPS of $0.74, up 4.23% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $653.85 million, showing a 0.63% drop compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, there's been a 4.63% rise in the Zacks Consensus EPS estimate. Louisiana-Pacific currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Louisiana-Pacific is presently being traded at a Forward P/E ratio of 21.53. This valuation marks a discount compared to its industry's average Forward P/E of 23.18.
We can additionally observe that LPX currently boasts a PEG ratio of 1.4. 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. The Building Products - Wood was holding an average PEG ratio of 2.29 at yesterday's closing price.
The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Louisiana-Pacific (LPX) Stock Sinks As Market Gains: Here's Why
Louisiana-Pacific (LPX - Free Report) closed the most recent trading day at $114.91, moving -0.55% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1% for the day. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.
Prior to today's trading, shares of the home construction supplier had gained 12.03% over the past month. This has outpaced the Construction sector's loss of 3.14% and the S&P 500's loss of 2.14% in that time.
The investment community will be closely monitoring the performance of Louisiana-Pacific in its forthcoming earnings report. The company is expected to report EPS of $0.74, up 4.23% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $653.85 million, showing a 0.63% drop compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, there's been a 4.63% rise in the Zacks Consensus EPS estimate. Louisiana-Pacific currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Louisiana-Pacific is presently being traded at a Forward P/E ratio of 21.53. This valuation marks a discount compared to its industry's average Forward P/E of 23.18.
We can additionally observe that LPX currently boasts a PEG ratio of 1.4. 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. The Building Products - Wood was holding an average PEG ratio of 2.29 at yesterday's closing price.
The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.