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In the latest trading session, Louisiana-Pacific (LPX) closed at $86.46, marking a -0.83% move from the previous day. This change lagged the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.
The home construction supplier's shares have seen a decrease of 5.22% over the last month, not keeping up with the Construction sector's loss of 1.18% and the S&P 500's loss of 0.84%.
The upcoming earnings release of Louisiana-Pacific will be of great interest to investors. The company's earnings report is expected on May 6, 2025. The company's upcoming EPS is projected at $1.13, signifying a 26.14% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $692.85 million, indicating a 4.3% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.99 per share and a revenue of $2.95 billion, indicating changes of -15.14% and +0.39%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.44% lower within the past month. Louisiana-Pacific currently has a Zacks Rank of #4 (Sell).
Investors should also note Louisiana-Pacific's current valuation metrics, including its Forward P/E ratio of 17.47. For comparison, its industry has an average Forward P/E of 22.46, which means Louisiana-Pacific is trading at a discount to the group.
Also, we should mention that LPX has a PEG ratio of 1.13. 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. As the market closed yesterday, the Building Products - Wood industry was having an average PEG ratio of 2.44.