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Weyerhaeuser (WY) Outpaces Stock Market Gains: What You Should Know

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Weyerhaeuser (WY - Free Report) closed at $32.99 in the latest trading session, marking a +0.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the timber and paper products company had lost 12.33% in the past month. In that same time, the Construction sector lost 14.17%, while the S&P 500 lost 10.02%.

Investors will be hoping for strength from Weyerhaeuser as it approaches its next earnings release. The company is expected to report EPS of $1.06, down 22.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.01 billion, down 4.2% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $11.25 billion, which would represent changes of -5.04% and +10.26%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Weyerhaeuser. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Weyerhaeuser is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Weyerhaeuser's current valuation metrics, including its Forward P/E ratio of 10.31. For comparison, its industry has an average Forward P/E of 8.43, which means Weyerhaeuser is trading at a premium to the group.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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 WY in the coming trading sessions, be sure to utilize Zacks.com.


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