In This Article:
Louisiana-Pacific (LPX) ended the recent trading session at $103.87, demonstrating a +0.31% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.22% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the home construction supplier had lost 12.06% in the past month. In that same time, the Construction sector lost 12.78%, while the S&P 500 lost 2.36%.
The investment community will be closely monitoring the performance of Louisiana-Pacific in its forthcoming earnings report. The company is predicted to post an EPS of $0.69, indicating a 2.82% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $653.85 million, down 0.63% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Louisiana-Pacific is holding a Zacks Rank of #1 (Strong Buy) right now.
In the context of valuation, Louisiana-Pacific is at present trading with a Forward P/E ratio of 20.18. This expresses a discount compared to the average Forward P/E of 22.63 of its industry.
Also, we should mention that LPX has a PEG ratio of 2.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Building Products - Wood industry had an average PEG ratio of 2.69.
The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 250+ industries.
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.