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If You Invested $1000 in Louisiana-Pacific a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Louisiana-Pacific (LPX - Free Report) ten years ago? It may not have been easy to hold on to LPX for all that time, but if you did, how much would your investment be worth today?
Louisiana-Pacific's Business In-Depth
With that in mind, let's take a look at Louisiana-Pacific's main business drivers.
Louisiana-Pacific Corporation or LP is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction.
Currently, the company operates 22 plants strategically located across the United States, Canada, Chile and Brazil through foreign subsidiaries. It also operates facilities through a joint venture. The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures.
The company has three reportable segments — Siding (contributing 51.5% of 2023 net sales), Oriented Strand Board or OSB (39.8%) and LP South America (7.9%). Notably, revenues from Other sources contributed 0.9% to its net sales.
Siding segment consists of LP SmartSide trim and siding, as well as LP Outdoor Building Solutions innovative products for premium outdoor buildings.
OSB segment manufactures and distributes OSB structural panel products including LP OSB, LP TechShield radiant barrier, LP TopNotch sub-flooring, LP Legacy super tough, moisture-resistant sub-flooring, LP WeatherLogic air & water barrier and LP FlameBlock fire-rated sheathing.
South America segment manufactures and distributes OSB and siding products in South America and certain export markets. South America segment manufactures and distributes OSB and siding products in South America and certain export markets.
On Aug 1, 2022, LP announced the completion of the divesture of its Engineered Wood Products (EWP) business to Pacific Woodtech and it is now treated as discontinued operations.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Louisiana-Pacific, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $6,126.79, or a 512.68% gain, as of May 27, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 179.12% and the price of gold increased 77.20% over the same time frame in comparison.
Analysts are forecasting more upside for LPX too.
Louisiana-Pacific’s first-quarter 2024 earnings and revenues topped the Zacks Consensus Estimate by 35.4% and 7%, respectively. The top and bottom lines grew year over year by 24% and 350%, respectively on the back of a surge in demand for Siding and OSB, highlighted by a significant increase in volume. Record-breaking volumes for ExpertFinish and BuilderSeries were achieved, underscoring the robust market appetite. Moreover, higher commodity prices and enhanced operational efficiency aided margin expansion during the quarter. LP also raised its 2024 outlook, thus fostering investors’ sentiments. Shares of the company have outperformed its industry in the year-to-date period. Although high costs and expenses, and market volatility are concerning, improving demand patterns and volume are likely to more than offset these headwinds.
The stock is up 20.53% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2024. The consensus estimate has moved up as well.
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If You Invested $1000 in Louisiana-Pacific a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Louisiana-Pacific (LPX - Free Report) ten years ago? It may not have been easy to hold on to LPX for all that time, but if you did, how much would your investment be worth today?
Louisiana-Pacific's Business In-Depth
With that in mind, let's take a look at Louisiana-Pacific's main business drivers.
Louisiana-Pacific Corporation or LP is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction.
Currently, the company operates 22 plants strategically located across the United States, Canada, Chile and Brazil through foreign subsidiaries. It also operates facilities through a joint venture. The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures.
The company has three reportable segments — Siding (contributing 51.5% of 2023 net sales), Oriented Strand Board or OSB (39.8%) and LP South America (7.9%). Notably, revenues from Other sources contributed 0.9% to its net sales.
Siding segment consists of LP SmartSide trim and siding, as well as LP Outdoor Building Solutions innovative products for premium outdoor buildings.
OSB segment manufactures and distributes OSB structural panel products including LP OSB, LP TechShield radiant barrier, LP TopNotch sub-flooring, LP Legacy super tough, moisture-resistant sub-flooring, LP WeatherLogic air & water barrier and LP FlameBlock fire-rated sheathing.
South America segment manufactures and distributes OSB and siding products in South America and certain export markets. South America segment manufactures and distributes OSB and siding products in South America and certain export markets.
On Aug 1, 2022, LP announced the completion of the divesture of its Engineered Wood Products (EWP) business to Pacific Woodtech and it is now treated as discontinued operations.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Louisiana-Pacific, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $6,126.79, or a 512.68% gain, as of May 27, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 179.12% and the price of gold increased 77.20% over the same time frame in comparison.
Analysts are forecasting more upside for LPX too.
Louisiana-Pacific’s first-quarter 2024 earnings and revenues topped the Zacks Consensus Estimate by 35.4% and 7%, respectively. The top and bottom lines grew year over year by 24% and 350%, respectively on the back of a surge in demand for Siding and OSB, highlighted by a significant increase in volume. Record-breaking volumes for ExpertFinish and BuilderSeries were achieved, underscoring the robust market appetite. Moreover, higher commodity prices and enhanced operational efficiency aided margin expansion during the quarter. LP also raised its 2024 outlook, thus fostering investors’ sentiments. Shares of the company have outperformed its industry in the year-to-date period. Although high costs and expenses, and market volatility are concerning, improving demand patterns and volume are likely to more than offset these headwinds.
The stock is up 20.53% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2024. The consensus estimate has moved up as well.