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

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Louisiana-Pacific (LPX - Free Report) closed at $60.52 in the latest trading session, marking a +0.02% move from the prior day. This change outpaced the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.5%.

Coming into today, shares of the home construction supplier had lost 11.03% in the past month. In that same time, the Construction sector lost 7.02%, while the S&P 500 lost 6.69%.

Louisiana-Pacific will be looking to display strength as it nears its next earnings release. In that report, analysts expect Louisiana-Pacific to post earnings of $4.60 per share. This would mark a year-over-year decline of 2.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.23 billion, down 7.4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.87 per share and revenue of $4.56 billion, which would represent changes of +6.44% and +0.11%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Louisiana-Pacific. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Louisiana-Pacific currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Louisiana-Pacific is holding a Forward P/E ratio of 4.07. This represents a discount compared to its industry's average Forward P/E of 8.48.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.

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


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