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

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Weyerhaeuser (WY - Free Report) closed at $34.20 in the latest trading session, marking a +0.65% move from the prior day. This change outpaced the S&P 500's 0.16% gain on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.

Coming into today, shares of the timber and paper products company had lost 12.74% in the past month. In that same time, the Construction sector lost 12.25%, while the S&P 500 lost 6.79%.

Weyerhaeuser will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2022. In that report, analysts expect Weyerhaeuser to post earnings of $1.09 per share. This would mark a year-over-year decline of 20.44%. Meanwhile, our latest consensus estimate is calling for revenue of $2.8 billion, down 10.81% from the prior-year quarter.

WY's full-year Zacks Consensus Estimates are calling for earnings of $3.18 per share and revenue of $10.35 billion. These results would represent year-over-year changes of -5.64% and +1.5%, respectively.

Investors might also notice recent changes to analyst estimates for Weyerhaeuser. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.73% lower. Weyerhaeuser currently has a Zacks Rank of #3 (Hold).

Investors should also note Weyerhaeuser's current valuation metrics, including its Forward P/E ratio of 10.7. This represents a premium compared to its industry's average Forward P/E of 8.52.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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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