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UFP Industries (UFPI) Stock Sinks As Market Gains: What You Should Know

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UFP Industries (UFPI - Free Report) closed the latest trading day at $116.67, indicating a -1.76% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the wood and materials provider for the construction industry had lost 4.41% over the past month. This has lagged the Construction sector's gain of 5.67% and the S&P 500's gain of 3.52% in that time.

The upcoming earnings release of UFP Industries will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.68, reflecting a 20% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.75 billion, indicating an 8.41% decrease compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for UFP Industries. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. UFP Industries is currently a Zacks Rank #3 (Hold).

Looking at its valuation, UFP Industries is holding a Forward P/E ratio of 15.39. This expresses a discount compared to the average Forward P/E of 24.12 of its industry.

The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 163, placing it within the bottom 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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