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Louisiana-Pacific (LPX) Laps the Stock Market: Here's Why

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The latest trading session saw Louisiana-Pacific (LPX - Free Report) ending at $104.61, denoting a +1.13% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.

The home construction supplier's stock has climbed by 2.64% in the past month, exceeding the Construction sector's loss of 3.66% and lagging the S&P 500's gain of 3.48%.

Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. The company plans to announce its earnings on November 5, 2024. The company is expected to report EPS of $0.87, down 46.3% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $722.05 million, indicating a 0.82% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.04 per share and a revenue of $2.93 billion, indicating changes of +56.52% and +13.62%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Louisiana-Pacific holds a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 20.52 right now. This represents a discount compared to its industry's average Forward P/E of 26.25.

We can also see that LPX currently has a PEG ratio of 4.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Wood industry had an average PEG ratio of 3.51 as trading concluded yesterday.

The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 16% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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