Louisiana-Pacific (LPX) closed at $77.61 in the latest trading session, marking a -2.14% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.72%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Heading into today, shares of the home construction supplier had gained 12.34% over the past month, outpacing the Construction sector's gain of 0.11% and the S&P 500's loss of 0.9%.
Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. It is anticipated that the company will report an EPS of $0.64, marking a 35.35% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $683 million, indicating a 9.54% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2 per share and a revenue of $2.57 billion, demonstrating changes of -24.53% and -5%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Louisiana-Pacific. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Louisiana-Pacific boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 39.65 right now. This indicates a premium in contrast to its industry's Forward P/E of 28.84.
Also, we should mention that LPX has a PEG ratio of 1.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Building Products - Wood industry held an average PEG ratio of 1.51.
The Building Products - Wood industry is part of the Construction sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).