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Should Value Investors Buy Louisiana-Pacific (LPX) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Louisiana-Pacific (LPX - Free Report) . LPX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 18.25, which compares to its industry's average of 47.76. Over the past 52 weeks, LPX's Forward P/E has been as high as 74.64 and as low as 11.51, with a median of 14.38.
Investors will also notice that LPX has a PEG ratio of 2.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LPX's PEG compares to its industry's average PEG of 3.34. Over the past 52 weeks, LPX's PEG has been as high as 3.14 and as low as 2.30, with a median of 2.62.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LPX has a P/S ratio of 1.59. This compares to its industry's average P/S of 2.08.
Finally, we should also recognize that LPX has a P/CF ratio of 21.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LPX's current P/CF looks attractive when compared to its industry's average P/CF of 55.88. Over the past year, LPX's P/CF has been as high as 21.67 and as low as 6.51, with a median of 10.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Louisiana-Pacific is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LPX feels like a great value stock at the moment.
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Should Value Investors Buy Louisiana-Pacific (LPX) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Louisiana-Pacific (LPX - Free Report) . LPX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 18.25, which compares to its industry's average of 47.76. Over the past 52 weeks, LPX's Forward P/E has been as high as 74.64 and as low as 11.51, with a median of 14.38.
Investors will also notice that LPX has a PEG ratio of 2.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LPX's PEG compares to its industry's average PEG of 3.34. Over the past 52 weeks, LPX's PEG has been as high as 3.14 and as low as 2.30, with a median of 2.62.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LPX has a P/S ratio of 1.59. This compares to its industry's average P/S of 2.08.
Finally, we should also recognize that LPX has a P/CF ratio of 21.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LPX's current P/CF looks attractive when compared to its industry's average P/CF of 55.88. Over the past year, LPX's P/CF has been as high as 21.67 and as low as 6.51, with a median of 10.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Louisiana-Pacific is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LPX feels like a great value stock at the moment.