In the latest trading session, Louisiana-Pacific (LPX) closed at $117.74, marking a +0.66% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq depreciated by 1.2%.
Shares of the home construction supplier have appreciated by 9.43% over the course of the past month, outperforming the Construction sector's gain of 1.9% and the S&P 500's gain of 2.71%.
Analysts and investors alike will be keeping a close eye on the performance of Louisiana-Pacific in its upcoming earnings disclosure. The company's earnings report is set to go public on February 19, 2025. The company's upcoming EPS is projected at $0.79, signifying a 11.27% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $664.35 million, indicating a 0.97% increase compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Louisiana-Pacific. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.63% higher. Right now, Louisiana-Pacific possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Louisiana-Pacific is at present trading with a Forward P/E ratio of 21.79. Its industry sports an average Forward P/E of 22.19, so one might conclude that Louisiana-Pacific is trading at a discount comparatively.
Also, we should mention that LPX has a PEG ratio of 1.41. 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 2.24 at the close of the market yesterday.
The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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