Back to top

Image: Bigstock

UFP Industries (UFPI) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

UFP Industries (UFPI - Free Report) closed the most recent trading day at $118.45, moving -0.55% from the previous trading session. This change lagged the S&P 500's 0.34% loss on the day. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq decreased by 0.56%.

Shares of the wood and materials provider for the construction industry have appreciated by 4.43% over the course of the past month, underperforming the Construction sector's gain of 6.64% and outperforming the S&P 500's gain of 2.56%.

The upcoming earnings release of UFP Industries will be of great interest to investors. The company is expected to report EPS of $1.68, down 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.75 billion, down 8.41% from the year-ago period.

It is also important to note the recent changes to analyst estimates for UFP Industries. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Currently, UFP Industries is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, UFP Industries is currently trading at a Forward P/E ratio of 15.43. This valuation marks a discount compared to its industry's average Forward P/E of 23.11.

The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 31% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


UFP Industries, Inc. (UFPI) - free report >>

Published in