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

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Louisiana-Pacific (LPX - Free Report) closed at $61.59 in the latest trading session, marking a +0.65% move from the prior day. The stock lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.38%.

Heading into today, shares of the home construction supplier had gained 14.44% over the past month, outpacing the Construction sector's gain of 10.13% and the S&P 500's gain of 7.91% in that time.

Investors will be hoping for strength from Louisiana-Pacific as it approaches its next earnings release, which is expected to be August 9, 2022. In that report, analysts expect Louisiana-Pacific to post earnings of $4.38 per share. This would mark a year-over-year decline of 7.59%. Meanwhile, our latest consensus estimate is calling for revenue of $1.26 billion, down 4.71% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.93 per share and revenue of $4.36 billion, which would represent changes of -0.29% and -4.31%, respectively, from the prior year.

Any recent changes to analyst estimates for Louisiana-Pacific should also be noted by investors. 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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 6.38% lower. Louisiana-Pacific is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, Louisiana-Pacific is currently trading at a Forward P/E ratio of 4.39. This valuation marks a discount compared to its industry's average Forward P/E of 8.83.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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