Louisiana-Pacific (LPX) closed the most recent trading day at $64.16, moving +1.04% from the previous trading session. This change outpaced the S&P 500's 0.92% loss on the day.
Prior to today's trading, shares of the home construction supplier had gained 25.83% over the past month. This has outpaced the Construction sector's gain of 7.67% and the S&P 500's gain of 6.83% in that time.
LPX will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2021. The company is expected to report EPS of $2.67, up 685.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $931 million, up 59.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.27 per share and revenue of $3.22 billion. These totals would mark changes of +68.68% and +15.53%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LPX. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 22.87% higher. LPX is currently a Zacks Rank #1 (Strong Buy).
Investors should also note LPX's current valuation metrics, including its Forward P/E ratio of 8.93. For comparison, its industry has an average Forward P/E of 15.91, which means LPX is trading at a discount to the group.
The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% of all 250+ industries.
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.
To follow LPX in the coming trading sessions, be sure to utilize Zacks.com.
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