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Louisiana-Pacific (LPX) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Louisiana-Pacific (LPX) closed at $61.79, marking a -0.18% move from the previous day. This change lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.06%.

Prior to today's trading, shares of the home construction supplier had gained 13.49% over the past month. This has outpaced the Construction sector's gain of 9.7% and the S&P 500's gain of 8.78% in that time.

Wall Street will be looking for positivity from Louisiana-Pacific as it approaches its next earnings report date. This is expected to be August 9, 2022. In that report, analysts expect Louisiana-Pacific to post earnings of $4.38 per share. This would mark a year-over-year decline of 7.59%. Meanwhile, our latest consensus estimate is calling for revenue of $1.26 billion, down 4.71% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.93 per share and revenue of $4.36 billion. These totals would mark changes of -0.29% and -4.31%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Louisiana-Pacific. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 4.51% lower. Louisiana-Pacific is currently a Zacks Rank #4 (Sell).

In terms of valuation, Louisiana-Pacific is currently trading at a Forward P/E ratio of 4.45. This represents a discount compared to its industry's average Forward P/E of 9.02.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 10% 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.

To follow LPX in the coming trading sessions, be sure to utilize Zacks.com.

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