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Louisiana-Pacific (LPX) Gains As Market Dips: What You Should Know

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Louisiana-Pacific (LPX) closed at $56.91 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.15%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the home construction supplier had lost 12.4% in the past month. In that same time, the Construction sector lost 9.62%, while the S&P 500 lost 5.08%.

Wall Street will be looking for positivity from Louisiana-Pacific as it approaches its next earnings report date. In that report, analysts expect Louisiana-Pacific to post earnings of $4.50 per share. This would mark a year-over-year decline of 5.06%. Our most recent consensus estimate is calling for quarterly revenue of $1.26 billion, down 4.68% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.58 per share and revenue of $4.57 billion. These totals would mark changes of +4.37% and +0.47%, respectively, from last year.

Investors should also note any recent changes to 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.96% lower. Louisiana-Pacific is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Louisiana-Pacific's current valuation metrics, including its Forward P/E ratio of 3.89. For comparison, its industry has an average Forward P/E of 8.6, which means Louisiana-Pacific is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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