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Louisiana-Pacific (LPX) Advances While Market Declines: Some Information for Investors

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Louisiana-Pacific (LPX - Free Report) closed the most recent trading day at $108.40, moving +0.87% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.93%. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 1.53%.

Prior to today's trading, shares of the home construction supplier had gained 10.73% over the past month. This has outpaced the Construction sector's gain of 4.66% and the S&P 500's gain of 2.17% in that time.

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. Meanwhile, our latest consensus estimate is calling for revenue of $722.05 million, down 0.82% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.04 per share and revenue of $2.93 billion, which would represent changes of +56.52% and +13.62%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Louisiana-Pacific. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. Currently, Louisiana-Pacific is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Louisiana-Pacific is currently trading at a Forward P/E ratio of 21.32. For comparison, its industry has an average Forward P/E of 27.04, which means Louisiana-Pacific is trading at a discount to the group.

We can also see that LPX currently has a PEG ratio of 4.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Wood industry currently had an average PEG ratio of 3.63 as of yesterday's close.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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