For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Louisiana-Pacific (LPX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of LPX and the rest of the Construction group's stocks.
Louisiana-Pacific is a member of our Construction group, which includes 99 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. LPX is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for LPX's full-year earnings has moved 8.55% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, LPX has gained about 7.77% so far this year. Meanwhile, stocks in the Construction group have lost about 6.07% on average. This means that Louisiana-Pacific is performing better than its sector in terms of year-to-date returns.
To break things down more, LPX belongs to the Building Products - Wood industry, a group that includes 11 individual companies and currently sits at #19 in the Zacks Industry Rank. Stocks in this group have gained about 8.03% so far this year, so LPX is slightly underperforming its industry this group in terms of year-to-date returns.
LPX will likely be looking to continue its solid performance, so investors interested Construction stocks should continue to pay close attention to the company.
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