Louisiana-Pacific (LPX) closed at $85.99 in the latest trading session, marking a -1.96% move from the prior day. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 0.48%.
Coming into today, shares of the home construction supplier had lost 2.62% in the past month. In that same time, the Construction sector gained 1.98%, while the S&P 500 gained 4.27%.
The investment community will be closely monitoring the performance of Louisiana-Pacific in its forthcoming earnings report. On that day, Louisiana-Pacific is projected to report earnings of $1.08 per share, which would represent a year-over-year decline of 48.33%. Alongside, our most recent consensus estimate is anticipating revenue of $747.25 million, indicating a 8.2% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.24 per share and revenue of $2.93 billion, indicating changes of -27.89% and -0.49%, 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 recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.31% lower within the past month. Louisiana-Pacific is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Louisiana-Pacific is currently exchanging hands at a Forward P/E ratio of 20.71. Its industry sports an average Forward P/E of 27.08, so one might conclude that Louisiana-Pacific is trading at a discount comparatively.
Meanwhile, LPX's PEG ratio is currently 1.34. 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 had an average PEG ratio of 2.32 as trading concluded yesterday.
The Building Products - Wood industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 202, positioning it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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