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Louisiana-Pacific (LPX) Gains But Lags Market: What You Should Know

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In the latest trading session, Louisiana-Pacific (LPX - Free Report) closed at $76.39, marking a +0.13% move from the previous day. This move lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Heading into today, shares of the home construction supplier had gained 6.93% over the past month, outpacing the Construction sector's gain of 0.44% and the S&P 500's gain of 0.87% in that time.

Investors will be hoping for strength from Louisiana-Pacific as it approaches its next earnings release. The company is expected to report EPS of $1.83, down 8.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $846 million, down 1.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.50 per share and revenue of $4.32 billion. These totals would mark changes of +213.23% and +55.09%, respectively, from last year.

Any recent changes to analyst estimates for Louisiana-Pacific should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.75% higher 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 5.66. This valuation marks a discount compared to its industry's average Forward P/E of 11.48.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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