Louisiana-Pacific (LPX – Free Report) ended the recent trading session at $104.77, demonstrating a -0.3% swing from the preceding day’s closing price. This change lagged the S&P 500’s 0.04% loss on the day. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
The home construction supplier’s shares have seen a decrease of 9.9% over the last month, surpassing the Construction sector’s loss of 11.56% and falling behind the S&P 500’s gain of 1.05%.
The investment community will be paying close attention to the earnings performance of Louisiana-Pacific in its upcoming release. In that report, analysts expect Louisiana-Pacific to post earnings of $0.69 per share. This would mark a year-over-year decline of 2.82%. Our most recent consensus estimate is calling for quarterly revenue of $653.85 million, down 0.63% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.54 per share and revenue of $2.91 billion, indicating changes of +72.05% and +12.7%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Louisiana-Pacific. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Louisiana-Pacific is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 18.99 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 23.23.
It’s also important to note that LPX currently trades at a PEG ratio of 2.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Building Products – Wood industry held an average PEG ratio of 2.53.
The Building Products – Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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