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Is Louisiana-Pacific (LPX) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Louisiana-Pacific (LPX). LPX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8 right now. For comparison, its industry sports an average P/E of 17.01. Over the past 52 weeks, LPX's Forward P/E has been as high as 32.30 and as low as 7.67, with a median of 11.32.

Finally, investors will want to recognize that LPX has a P/CF ratio of 7.87. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.77. Over the past 52 weeks, LPX's P/CF has been as high as 28.37 and as low as 6.60, with a median of 11.68.

These are only a few of the key metrics included in Louisiana-Pacific's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LPX looks like an impressive value stock at the moment.


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