Louisiana-Pacific (LPX) closed the latest trading day at $86.38, indicating a +0.86% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.81%. Elsewhere, the Dow gained 1.56%, while the tech-heavy Nasdaq added 2.06%.
The home construction supplier's shares have seen a decrease of 4.17% over the last month, surpassing the Construction sector's loss of 7.59% and the S&P 500's loss of 6.14%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. The company plans to announce its earnings on May 6, 2025. On that day, Louisiana-Pacific is projected to report earnings of $1.12 per share, which would represent a year-over-year decline of 26.8%. Meanwhile, the latest consensus estimate predicts the revenue to be $692.85 million, indicating a 4.3% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.12 per share and revenue of $2.95 billion, indicating changes of -12.93% and +0.39%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Louisiana-Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Louisiana-Pacific boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Louisiana-Pacific is presently trading at a Forward P/E ratio of 16.74. This signifies a discount in comparison to the average Forward P/E of 16.93 for its industry.
We can additionally observe that LPX currently boasts a PEG ratio of 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Wood industry had an average PEG ratio of 2.05 as trading concluded yesterday.
The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 204, placing it within the bottom 18% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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