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Louisiana-Pacific (LPX) Suffers a Larger Drop Than the General Market: Key Insights

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Louisiana-Pacific (LPX - Free Report) ended the recent trading session at $92.91, demonstrating a -3.7% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.33%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.22%.

Shares of the home construction supplier witnessed a gain of 6.65% over the previous month, beating the performance of the Construction sector with its gain of 5.56%, and the S&P 500's gain of 4.07%.

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 August 6, 2025. The company is predicted to post an EPS of $1.06, indicating a 49.28% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $747.25 million, indicating a 8.2% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.17 per share and revenue of $2.93 billion, which would represent changes of -29.08% and -0.49%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 4.74% lower. Louisiana-Pacific is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Louisiana-Pacific is currently trading at a Forward P/E ratio of 23.12. This valuation marks a discount compared to its industry average Forward P/E of 29.32.

Also, we should mention that LPX has a PEG ratio of 1.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Wood industry had an average PEG ratio of 2.71 as trading concluded yesterday.

The Building Products - Wood industry is part of the Construction sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 18% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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