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Louisiana-Pacific (LPX) closed the latest trading day at $93.40, indicating a -0.73% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.33%.
Coming into today, shares of the home construction supplier had lost 7.3% in the past month. In that same time, the Construction sector lost 5.2%, while the S&P 500 lost 7.48%.
Investors will be eagerly watching for the performance of Louisiana-Pacific in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.12, signifying a 26.8% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $692.85 million, down 4.3% from the year-ago period.
LPX's full-year Zacks Consensus Estimates are calling for earnings of $5.12 per share and revenue of $2.95 billion. These results would represent year-over-year changes of -12.93% and +0.39%, respectively.
It is also important to note the recent changes to analyst estimates for Louisiana-Pacific. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.7% decrease. Louisiana-Pacific presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Louisiana-Pacific is currently exchanging hands at a Forward P/E ratio of 18.4. For comparison, its industry has an average Forward P/E of 20.59, which means Louisiana-Pacific is trading at a discount to the group.
Also, we should mention that LPX has a PEG ratio of 1.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LPX's industry had an average PEG ratio of 2.14 as of yesterday's close.