In This Article:
In the latest trading session, Louisiana-Pacific (LPX) closed at $94.76, marking a -0.42% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 2.04%.
Shares of the home construction supplier witnessed a loss of 5.64% over the previous month, trailing the performance of the Construction sector with its loss of 1.75% and the S&P 500's loss of 2.91%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. It is anticipated that the company will report an EPS of $1.12, marking a 26.8% fall compared to the same quarter of the previous year. 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 full year, the Zacks Consensus Estimates project earnings of $5.12 per share and a revenue of $2.95 billion, demonstrating changes of -12.93% and +0.39%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Louisiana-Pacific. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Louisiana-Pacific possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 18.6 right now. This denotes a discount relative to the industry's average Forward P/E of 20.89.
One should further note that LPX currently holds a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Wood industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 17% of all 250+ industries.