Louisiana-Pacific (LPX) Outpaces Stock Market Gains: What You Should Know
Louisiana-Pacific (LPX) closed at $65.37 in the latest trading session, marking a +1.47% move from the prior day. This move outpaced the S&P 500's daily gain of 1.11%.
Heading into today, shares of the home construction supplier had gained 17.43% over the past month, outpacing the Construction sector's gain of 4.47% and the S&P 500's gain of 4.72% 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. In that report, analysts expect LPX to post earnings of $2.67 per share. This would mark year-over-year growth of 685.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for LPX. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 22.87% higher within the past month. LPX currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, LPX is holding a Forward P/E ratio of 8.72. This valuation marks a discount compared to its industry's average Forward P/E of 15.74.
The Building Products - Wood industry is part of the Construction sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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