Louisiana-Pacific (LPX) Gains As Market Dips: What You Should Know
In the latest trading session, Louisiana-Pacific (LPX) closed at $77.90, marking a +1.52% move from the previous day. This move outpaced the S&P 500's daily loss of 1.42%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the home construction supplier had gained 1.28% in the past month. In that same time, the Construction sector lost 4.33%, while the S&P 500 gained 0.39%.
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 $1.83 per share. This would mark a year-over-year decline of 8.96%. Meanwhile, our latest consensus estimate is calling for revenue of $846 million, down 1.63% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Louisiana-Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% higher. Louisiana-Pacific is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Louisiana-Pacific's current valuation metrics, including its Forward P/E ratio of 9.3. This valuation marks a discount compared to its industry's average Forward P/E of 21.14.
The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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