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Weyerhaeuser (WY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Weyerhaeuser (WY - Free Report) closed at $35.70, marking a -0.86% move from the previous day. This change lagged the S&P 500's daily loss of 0.08%.

Heading into today, shares of the timber and paper products company had lost 9.98% over the past month, lagging the Construction sector's loss of 2.64% and the S&P 500's gain of 1.68% in that time.

Investors will be hoping for strength from WY as it approaches its next earnings release. In that report, analysts expect WY to post earnings of $1.32 per share. This would mark year-over-year growth of 1100%. Meanwhile, our latest consensus estimate is calling for revenue of $2.92 billion, up 78.85% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.60 per share and revenue of $10.22 billion. These totals would mark changes of +179.07% and +35.71%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for WY. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 23.39% higher. WY currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, WY is holding a Forward P/E ratio of 10. For comparison, its industry has an average Forward P/E of 12.61, which means WY is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% 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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