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Why Louisiana-Pacific (LPX) Outpaced the Stock Market Today
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Louisiana-Pacific (LPX - Free Report) closed at $97.74 in the latest trading session, marking a +2.44% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow experienced a rise of 1.36%, and the technology-dominated Nasdaq saw an increase of 0.72%.
The stock of home construction supplier has fallen by 7.14% in the past month, lagging the Construction sector's gain of 3.27% and the S&P 500's gain of 2.38%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. The company is predicted to post an EPS of $0.41, indicating a 66.39% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $663.35 million, indicating a 8.12% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.91 per share and revenue of $2.78 billion, which would represent changes of -50.51% and -5.43%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Louisiana-Pacific possesses a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Louisiana-Pacific is at present trading with a Forward P/E ratio of 32.79. For comparison, its industry has an average Forward P/E of 31.01, which means Louisiana-Pacific is trading at a premium to the group.
We can also see that LPX currently has a PEG ratio of 2.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Wood industry held an average PEG ratio of 2.51.
The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 230, finds itself in the bottom 7% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Why Louisiana-Pacific (LPX) Outpaced the Stock Market Today
Louisiana-Pacific (LPX - Free Report) closed at $97.74 in the latest trading session, marking a +2.44% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow experienced a rise of 1.36%, and the technology-dominated Nasdaq saw an increase of 0.72%.
The stock of home construction supplier has fallen by 7.14% in the past month, lagging the Construction sector's gain of 3.27% and the S&P 500's gain of 2.38%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. The company is predicted to post an EPS of $0.41, indicating a 66.39% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $663.35 million, indicating a 8.12% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.91 per share and revenue of $2.78 billion, which would represent changes of -50.51% and -5.43%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Louisiana-Pacific possesses a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Louisiana-Pacific is at present trading with a Forward P/E ratio of 32.79. For comparison, its industry has an average Forward P/E of 31.01, which means Louisiana-Pacific is trading at a premium to the group.
We can also see that LPX currently has a PEG ratio of 2.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Wood industry held an average PEG ratio of 2.51.
The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 230, finds itself in the bottom 7% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.