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Why Louisiana-Pacific (LPX) Outpaced the Stock Market Today
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Louisiana-Pacific (LPX - Free Report) ended the recent trading session at $106.81, demonstrating a +0.32% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.56%.
Shares of the home construction supplier have appreciated by 8.89% over the course of the past month, outperforming the Construction sector's gain of 3.49% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 46.3% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $722.05 million, reflecting a 0.82% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.04 per share and a revenue of $2.93 billion, representing changes of +56.52% and +13.62%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Louisiana-Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Louisiana-Pacific presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 21.13 right now. For comparison, its industry has an average Forward P/E of 27.7, which means Louisiana-Pacific is trading at a discount to the group.
Also, we should mention that LPX has a PEG ratio of 4.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Wood industry had an average PEG ratio of 3.66.
The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 234, finds itself in the bottom 8% echelons 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.
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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Why Louisiana-Pacific (LPX) Outpaced the Stock Market Today
Louisiana-Pacific (LPX - Free Report) ended the recent trading session at $106.81, demonstrating a +0.32% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.56%.
Shares of the home construction supplier have appreciated by 8.89% over the course of the past month, outperforming the Construction sector's gain of 3.49% and the S&P 500's gain of 1.65%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 46.3% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $722.05 million, reflecting a 0.82% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.04 per share and a revenue of $2.93 billion, representing changes of +56.52% and +13.62%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Louisiana-Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Louisiana-Pacific presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 21.13 right now. For comparison, its industry has an average Forward P/E of 27.7, which means Louisiana-Pacific is trading at a discount to the group.
Also, we should mention that LPX has a PEG ratio of 4.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Wood industry had an average PEG ratio of 3.66.
The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 234, finds itself in the bottom 8% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.