For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Louisiana-Pacific (LPX) ten years ago? It may not have been easy to hold on to LPX for all that time, but if you did, how much would your investment be worth today?

Louisiana-Pacific's Business In-Depth

With that in mind, let's take a look at Louisiana-Pacific's main business drivers.

Louisiana-Pacific Corporation or LP is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction.

Currently, the company operates 22 plants strategically located across the United States, Canada, Chile and Brazil through foreign subsidiaries. It also operates facilities through a joint venture. The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures.

The company has three reportable segments — Siding (contributing 51.5% of 2023 net sales), Oriented Strand Board or OSB (39.8%) and LP South America (7.9%). Notably, revenues from Other sources contributed 0.9% to its net sales.

Siding segment consists of LP SmartSide trim and siding, as well as LP Outdoor Building Solutions innovative products for premium outdoor buildings.

OSB segment manufactures and distributes OSB structural panel products including LP OSB, LP TechShield radiant barrier, LP TopNotch sub-flooring, LP Legacy super tough, moisture-resistant sub-flooring, LP WeatherLogic air & water barrier and LP FlameBlock fire-rated sheathing.

South America segment manufactures and distributes OSB and siding products in South America and certain export markets. South America segment manufactures and distributes OSB and siding products in South America and certain export markets.
 

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Louisiana-Pacific ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in November 2014 would be worth $7,619.80, or a 661.98% gain, as of November 11, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 195.07% and the price of gold increased 121.31% over the same time frame in comparison.

Analysts are anticipating more upside for LPX.

Louisiana-Pacific shares have outperformed its industry in the year-to-date period. The trend is likely to continue as it reported impressive third-quarter 2024 results. Both the earnings and net sales beat the respective Zacks Consensus Estimate and outpaced the guidance it previously provided. The Siding segment generated record net sales and adjusted EBITDA backed by the solid execution of its strategy to drive growth, margin, specialization and efficiency. OSB also reported better than expected adjusted EBITDA, thanks to operational efficiency and cost control measures. Backed by strength in Siding, LP increased its 2024 guidance. However, high costs and expenses, and market volatility are concerning to the company’s prospects.

The stock is up 6.62% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2024. The consensus estimate has moved up as well.

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