In This Article:
In the latest trading session, Louisiana-Pacific (LPX) closed at $84.20, marking a +0.44% move from the previous day. This change outpaced the S&P 500's 0.13% gain on the day. Meanwhile, the Dow experienced a drop of 1.33%, and the technology-dominated Nasdaq saw a decrease of 0.13%.
Heading into today, shares of the home construction supplier had lost 10.9% over the past month, lagging the Construction sector's loss of 7.68% and the S&P 500's loss of 6.3% in that time.
The investment community will be closely monitoring the performance of Louisiana-Pacific in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2025. The company is predicted to post an EPS of $1.13, indicating a 26.14% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $692.85 million, reflecting a 4.3% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.99 per share and a revenue of $2.95 billion, demonstrating changes of -15.14% and +0.39%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Louisiana-Pacific. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.44% lower. As of now, Louisiana-Pacific holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Louisiana-Pacific is currently exchanging hands at a Forward P/E ratio of 16.8. For comparison, its industry has an average Forward P/E of 17.1, which means Louisiana-Pacific is trading at a discount to the group.
We can also see that LPX currently has a PEG ratio of 1.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Building Products - Wood industry was having an average PEG ratio of 2.