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Louisiana-Pacific (LPX) Gains As Market Dips: What You Should Know

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Louisiana-Pacific (LPX - Free Report) closed the most recent trading day at $115.55, moving +0.99% from the previous trading session. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.89%.

The home construction supplier's stock has climbed by 9.98% in the past month, exceeding the Construction sector's loss of 4.36% and the S&P 500's loss of 1.56%.

Analysts and investors alike will be keeping a close eye on the performance of Louisiana-Pacific in its upcoming earnings disclosure. On that day, Louisiana-Pacific is projected to report earnings of $0.74 per share, which would represent year-over-year growth of 4.23%. Alongside, our most recent consensus estimate is anticipating revenue of $653.85 million, indicating a 0.63% downward movement from the same quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Louisiana-Pacific. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 4.63% higher. Louisiana-Pacific is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Louisiana-Pacific is presently trading at a Forward P/E ratio of 21.32. This expresses a discount compared to the average Forward P/E of 22.89 of its industry.

It's also important to note that LPX currently trades at a PEG ratio of 1.38. 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 average PEG ratio for the Building Products - Wood industry stood at 2.27 at the close of the market yesterday.

The Building Products - Wood industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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