Louisiana-Pacific (LPX) Gains As Market Dips: What You Should Know

This story originally appeared on Zacks

In the last trading session, Louisiana-Pacific (LPX) closed at $73.44, recording a +0.1% move from the day before. The move outpaced the S&P 500’s daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.01%.

– Zacks

Heading into the day, the home builder’s stock has lost 5.19% over the past month, trailing the construction sector’s loss of 4.97% and the S&P 500’s loss of 0.13% in that time.

Wall Street will be looking for positivity from the Louisiana Pacific region as it approaches the date of the next earnings report. The company is expected to report earnings per share of $1.83, down 8.96% from the previous quarter. Meanwhile, our latest consensus estimate calls for revenue of $846 million, down 1.63% from the prior year quarter.

Investors may also note recent changes in analyst estimates for the Louisiana Pacific region. These reviews help show the ever-changing nature of near-term business trends. As such, positive rating reviews reflect the analyst’s optimism about the company’s business and profitability.

Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.

The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). It has an impressive, externally audited track record of success, with the #1 stock having averaged a +25% annual return since 1988. Over the past month, Zacks Consensus EPS estimate is up 3.99%. Louisiana Pacific currently has a Zacks rating of #2 (Buy).

Given its valuation, Louisiana Pacific holds a forward P/E ratio of 8.89. This is a discount compared to the industry’s average forward P/E of 16.56.

Building products – the timber industry is part of the construction sector. This group has a Zacks Industry Rating of 72, placing it in the top 29% of all 250+ industries.

Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to keep track of all these stock movement metrics and more in upcoming trading sessions.

Zacks’ top picks for AI capitalization

In 2021, this world-changing technology is expected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create “the world’s first trillionaires”. Zacks’ urgent special report reveals 3 AI picks that investors need to know today.

See 3 AI stocks with extremely bullish potential >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 of the best stocks for the next 30 days. Click for this free report

LouisianaPacific Corporation (LPX): Free Stock Analysis Report

To read this article on Zacks.com click here.


Leave a Comment