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Why the Market Dipped But Louisiana-Pacific (LPX) Gained Today

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In the latest market close, Louisiana-Pacific (LPX - Free Report) reached $100.07, with a +0.43% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.92%. Meanwhile, the Dow experienced a drop of 0.96%, and the technology-dominated Nasdaq saw a decrease of 1.6%.

The the stock of home construction supplier has fallen by 6.71% in the past month, lagging the Construction sector's loss of 1.67% and the S&P 500's gain of 2.68%.

The investment community will be paying close attention to the earnings performance of Louisiana-Pacific in its upcoming release. The company is slated to reveal its earnings on November 5, 2024. The company is predicted to post an EPS of $0.87, indicating a 46.3% decline compared to the equivalent 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 full year, the Zacks Consensus Estimates project earnings of $5.04 per share and a revenue of $2.93 billion, demonstrating changes of +56.52% and +13.62%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Louisiana-Pacific currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Louisiana-Pacific is presently being traded at a Forward P/E ratio of 19.77. This represents a discount compared to its industry's average Forward P/E of 21.61.

It is also worth noting that LPX currently has a PEG ratio of 4.63. 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. The Building Products - Wood industry had an average PEG ratio of 2.39 as trading concluded yesterday.

The Building Products - Wood industry is part of the Construction sector. With its current Zacks Industry Rank of 204, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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