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

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In the latest trading session, Louisiana-Pacific (LPX - Free Report) closed at $63.51, marking a +0.03% move from the previous day. This change outpaced the S&P 500's 0.18% loss on the day.

Prior to today's trading, shares of the home construction supplier had lost 9.55% over the past month. This has lagged the Construction sector's loss of 4.29% and the S&P 500's gain of 0.04% in that time.

LPX will be looking to display strength as it nears its next earnings release. On that day, LPX is projected to report earnings of $4.10 per share, which would represent year-over-year growth of 853.49%. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 107.48% from the year-ago period.

LPX's full-year Zacks Consensus Estimates are calling for earnings of $12.38 per share and revenue of $3.95 billion. These results would represent year-over-year changes of +187.24% and +41.57%, respectively.

Investors should also note any recent changes to analyst estimates for LPX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.62% higher. LPX is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, LPX is holding a Forward P/E ratio of 5.13. Its industry sports an average Forward P/E of 12.52, so we one might conclude that LPX is trading at a discount comparatively.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.

To follow LPX in the coming trading sessions, be sure to utilize Zacks.com.


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