Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Louisiana-Pacific (LPX) Increases Yet Falls Behind Market: What Investors Need to Know

In This Article:

Louisiana-Pacific (LPX) closed at $84.56 in the latest trading session, marking a +0.54% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.67%. Meanwhile, the Dow experienced a rise of 1.07%, and the technology-dominated Nasdaq saw an increase of 2.5%.

Coming into today, shares of the home construction supplier had lost 11.61% in the past month. In that same time, the Construction sector lost 6.62%, while the S&P 500 lost 6.57%.

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. On that day, Louisiana-Pacific is projected to report earnings of $1.13 per share, which would represent a year-over-year decline of 26.14%. Simultaneously, our latest consensus estimate expects the revenue to be $692.85 million, showing a 4.3% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.99 per share and a revenue of $2.95 billion, signifying shifts of -15.14% and +0.39%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates 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 company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 2.44% lower within the past month. Louisiana-Pacific is holding a Zacks Rank of #4 (Sell) right now.

Looking at valuation, Louisiana-Pacific is presently trading at a Forward P/E ratio of 16.86. Its industry sports an average Forward P/E of 17.39, so one might conclude that Louisiana-Pacific is trading at a discount comparatively.

Meanwhile, LPX's PEG ratio is currently 1.09. 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. The average PEG ratio for the Building Products - Wood industry stood at 2.35 at the close of the market yesterday.