In the latest market close, Louisiana-Pacific (LPX – Free Report) reached $103.39, with a -1.32% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.11%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.49%.
Coming into today, shares of the home construction supplier had lost 10.18% in the past month. In that same time, the Construction sector lost 10.86%, while the S&P 500 gained 0.4%.
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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.54 per share and a revenue of $2.91 billion, representing changes of +72.05% and +12.7%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Louisiana-Pacific presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Louisiana-Pacific currently has a Forward P/E ratio of 18.93. This signifies a discount in comparison to the average Forward P/E of 23.18 for its industry.
One should further note that LPX currently holds a PEG ratio of 2.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. As of the close of trade yesterday, the Building Products – Wood industry held an average PEG ratio of 2.52.
The Building Products – Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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