Louisiana-Pacific (LPX) ended the recent trading session at $90.18, demonstrating a +1.51% change from the preceding day's closing price. This change outpaced the S&P 500's 0.34% gain on the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.
Shares of the home construction supplier have depreciated by 4.69% over the course of the past month, underperforming the Construction sector's gain of 0.71%, and the S&P 500's gain of 3.54%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. In that report, analysts expect Louisiana-Pacific to post earnings of $0.39 per share. This would mark a year-over-year decline of 68.03%. Meanwhile, our latest consensus estimate is calling for revenue of $659.35 million, down 8.68% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.82 per share and a revenue of $2.76 billion, signifying shifts of -52.04% and -5.99%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.01% lower within the past month. Louisiana-Pacific is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Louisiana-Pacific is holding a Forward P/E ratio of 31.48. This represents a premium compared to its industry average Forward P/E of 30.61.
We can also see that LPX currently has a PEG ratio of 2.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Wood was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Louisiana-Pacific Corporation (LPX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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