The latest trading session saw Louisiana-Pacific (LPX – Free Report) ending at $106.55, denoting a -0.75% adjustment from its last day’s close. The stock’s change was less than the S&P 500’s daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.
The home construction supplier’s shares have seen a decrease of 7.94% over the last month, surpassing the Construction sector’s loss of 11.66% and falling behind the S&P 500’s loss of 2.8%.
Investors will be eagerly watching for the performance of Louisiana-Pacific in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $0.74, signifying a 4.23% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $653.85 million, down 0.63% from the prior-year quarter.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
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, 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. Within the past 30 days, our consensus EPS projection has moved 4.63% higher. Louisiana-Pacific presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Louisiana-Pacific is presently trading at a Forward P/E ratio of 20. This expresses a discount compared to the average Forward P/E of 22.7 of its industry.
Meanwhile, LPX’s PEG ratio is currently 1.3. 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 2.21.
The Building Products – Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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