Louisiana-Pacific (LPX) Opens Innovation Center to Drive Growth
Louisiana-Pacific Corporation LPX — commonly known as LP Building Solutions (LP) — has unveiled the LP Innovation Center. Located at the Natural Resources Research Institute (NRRI) at the University of Minnesota Duluth, the facility represents LP's commitment to driving future growth through new product development and sustainable technology in the building materials industry.
The LP Innovation Center is a unique collaboration between LP and NRRI, aimed at advancing the use of sustainable technology in engineered wood products and applications. The facility provides a controlled environment for rigorous evaluation and testing, enabling LP to pursue its ambitious roadmap of future LP SmartSide Trim & Siding and LP Structural Solutions products set to be released within the next five to 10 years.
By establishing the LP Innovation Center at NRRI, this leading manufacturer of high-performance building products gains access to the scientific and engineering expertise of NRRI's professionals. Additionally, the center benefits from the local knowledge of the LP team, given its proximity to the latter’s SmartSide siding mill in Two Harbors, MN.
The LP Innovation Center not only represents a significant investment in growth and sustainability but also strengthens LP's position as a leader in the industry. By fostering collaboration, innovation, and sustainability, LP is well-positioned to meet future market demands and capitalize on new opportunities. Its increased product offerings, market expansion and enhanced customer relationships are likely to make LP a stock to watch in the coming years.
Share Price Performance
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Shares of the company have gained 14.3% this year so far compared with the Zacks Building Products – Wood industry’s 8.2% growth. The trend is likely to continue, given its focus on innovations, the Siding business, cost containment efforts and enhancing shareholders’ value.
LP has been increasing the use of Siding products in repair/remodeling and rolling out SmartSide products. It exited the fiber product line to focus on higher-margin SmartSide strand products. The company also launched ExpertFinish within the Prefinish product line.
Zacks Rank
LP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks that warrant a look in the Zacks Construction sector are Willdan Group, Inc. WLDN, Martin Marietta Materials, Inc. MLM and Sterling Infrastructure, Inc. STRL.
Willdan Group is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry.
Willdan Group presently sports a Zacks Rank #1. WLDN’s expected earnings growth rate for 2023 is 39.8%.
Martin Marietta Materials sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 31%, on average. Shares of MLM have gained 41.8% in the past year.
The Zacks Consensus Estimate for MLM’s 2023 sales and EPS indicates a rise of 19% and 33.1%, respectively, from the year-ago period’s levels.
Sterling Infrastructure, currently carrying a Zacks Rank #2 (Buy), provides transportation, e-infrastructure and building solutions.
STRL’s expected earnings growth rate for 2023 is 11.4%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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