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UFP Industries (UFPI) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw UFP Industries (UFPI - Free Report) ending at $127.14, denoting a -0.2% adjustment from its last day's close. This change lagged the S&P 500's 0.04% gain on the day. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.

Coming into today, shares of the wood and materials provider for the construction industry had gained 14.85% in the past month. In that same time, the Construction sector gained 14.44%, while the S&P 500 gained 5.28%.

The investment community will be paying close attention to the earnings performance of UFP Industries in its upcoming release. The company is expected to report EPS of $1.68, down 20% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.75 billion, down 8.41% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.12 per share and a revenue of $7.45 billion, representing changes of -25.98% and -22.65%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for UFP Industries. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UFP Industries is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, UFP Industries is at present trading with a Forward P/E ratio of 15.69. For comparison, its industry has an average Forward P/E of 29.26, which means UFP Industries is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 199, finds itself in the bottom 22% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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