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Louisiana-Pacific (LPX) Outpaces Stock Market Gains: What You Should Know

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Louisiana-Pacific (LPX) closed the most recent trading day at $54.17, moving +0.24% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.2%.

Coming into today, shares of the home construction supplier had lost 17.71% in the past month. In that same time, the Construction sector lost 12.19%, while the S&P 500 lost 8.32%.

Louisiana-Pacific will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.60, down 2.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.23 billion, down 7.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.87 per share and revenue of $4.56 billion. These totals would mark changes of +6.44% and +0.11%, respectively, from last year.

Any recent changes to analyst estimates for Louisiana-Pacific should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Louisiana-Pacific is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Louisiana-Pacific is holding a Forward P/E ratio of 3.63. For comparison, its industry has an average Forward P/E of 8.36, 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 35, putting it in the top 14% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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