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Louisiana-Pacific (LPX) closed at $86.10 in the latest trading session, marking a -1.27% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 5.98%. Elsewhere, the Dow lost 5.5%, while the tech-heavy Nasdaq lost 5.82%.
Shares of the home construction supplier have depreciated by 6.99% over the course of the past month, underperforming the Construction sector's loss of 6.07% and outperforming the S&P 500's loss of 7.66%.
The upcoming earnings release of Louisiana-Pacific will be of great interest to investors. The company is expected to report EPS of $1.12, down 26.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $692.85 million, down 4.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.12 per share and a revenue of $2.95 billion, representing changes of -12.93% and +0.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Louisiana-Pacific. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Louisiana-Pacific currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Louisiana-Pacific is at present trading with a Forward P/E ratio of 17.05. This represents a discount compared to its industry's average Forward P/E of 19.37.
One should further note that LPX currently holds a PEG ratio of 1.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Wood industry currently had an average PEG ratio of 2.06 as of yesterday's close.
The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 22% echelons of all 250+ industries.