Louisiana-Pacific (LPX) ended the recent trading session at $87.81, demonstrating a +1.4% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.96%. On the other hand, the Dow registered a gain of 0.89%, and the technology-centric Nasdaq increased by 0.94%.
Prior to today's trading, shares of the home construction supplier had lost 6.52% lagged the Construction sector's loss of 2.29% and the S&P 500's gain of 0.5%.
The investment community will be closely monitoring the performance of Louisiana-Pacific in its forthcoming earnings report. The company is expected to report EPS of $1.13, down 45.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $747.25 million, down 8.2% from the year-ago period.
LPX's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $2.93 billion. These results would represent year-over-year changes of -25.51% and -0.49%, respectively.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Louisiana-Pacific is carrying a Zacks Rank of #3 (Hold).
Investors should also note Louisiana-Pacific's current valuation metrics, including its Forward P/E ratio of 19.77. Its industry sports an average Forward P/E of 26.49, so one might conclude that Louisiana-Pacific is trading at a discount comparatively.
Meanwhile, LPX's PEG ratio is currently 1.28. 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 industry currently had an average PEG ratio of 2.28 as of yesterday's close.
The Building Products - Wood industry is part of the Construction sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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