Core Viewpoint - Louisiana-Pacific (LPX) has shown strong stock performance recently, with a return of +10.9% over the past month, significantly outperforming the S&P 500 composite's +1.2% change [2] Earnings Estimates Revisions - For the current quarter, Louisiana-Pacific is expected to post earnings of $0.79 per share, reflecting an increase of +11.3% year-over-year, with the Zacks Consensus Estimate changing by +2.3% in the last 30 days [5] - The consensus earnings estimate for the current fiscal year is $5.64, indicating a substantial increase of +75.2% from the previous year, with a +4.6% change in the last month [5] - For the next fiscal year, the consensus estimate is $5.37, which represents a decrease of -4.9% from the expected report a year ago, with a +4.7% change recently [6] Revenue Growth Projections - The consensus sales estimate for the current quarter is $664.35 million, showing a year-over-year increase of +1% [9] - For the current fiscal year, the sales estimate is $2.92 billion, indicating a growth of +13.1%, while the next fiscal year's estimate of $3.04 billion reflects a +4% change [9] Recent Performance and Surprises - Louisiana-Pacific reported revenues of $722 million in the last quarter, a slight decline of -0.8% year-over-year, with an EPS of $1.22 compared to $1.62 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $699.7 million by +3.19%, and the EPS surprise was +38.64% [11] - The company has consistently beaten consensus EPS and revenue estimates over the past four quarters [11] Valuation Metrics - Louisiana-Pacific is graded C on the Zacks Value Style Score, indicating it is trading at par with its peers [15] - The assessment of valuation multiples such as P/E, P/S, and P/CF is essential to determine if the stock is fairly valued compared to its historical values and peers [13][14] Conclusion - The analysis suggests that Louisiana-Pacific may outperform the broader market in the near term, supported by its Zacks Rank 2 [16]

Core Insights - The construction sector is expected to report mixed earnings for Q4 2024, driven by both growth opportunities and challenges [1] - Increased infrastructure spending and strong housing demand are positive factors, while rising labor costs and high interest rates pose risks [1] Earnings Expectations - Construction sector earnings are projected to decline by 5% in Q4 2024, following a 1.8% decline in Q3 2024 [9] - Revenues are expected to increase by 0.4%, a slowdown from the previous quarter's growth of 2.3% [9] Sector Drivers - Federal spending on infrastructure projects, supported by the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), is a significant growth driver [3] - Reshoring efforts, particularly in semiconductor manufacturing and clean energy projects, are boosting demand for industrial construction [4] Challenges - The construction sector faces challenges from ongoing labor shortages, leading to higher wages and potential project delays [7] - Material costs remain volatile, particularly for cement, steel, and electrical components, impacting profit margins [7] Residential Construction - Despite high mortgage rates, homebuilders are maintaining demand through incentives, but margin compression is a concern due to increased costs [6] - The lack of existing home inventory is supporting new home sales, which benefits residential construction [6] Stock Picks - Five construction stocks identified as likely to beat earnings estimates include Louisiana-Pacific Corporation (LPX), Trex Company, Inc. (TREX), Sterling Infrastructure, Inc. (STRL), PulteGroup, Inc. (PHM), and Weyerhaeuser Company (WY) [2][14] - LPX is expected to report an EPS of 74 cents, reflecting a 4.2% growth year-over-year [15] - TREX's EPS estimate is 5 cents, indicating a 75% decline from the previous year [16] - STRL's EPS is projected at $1.34, showing a 3.1% increase year-over-year [18] - PHM's EPS estimate is $3.21, representing a 2.1% decline from the year-ago figure [19] - WY's EPS is expected to be 7 cents, a 56.3% decrease from the previous year [20]

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Company Performance - Louisiana-Pacific (LPX) closed at $114.91, down 0.55% from the previous trading session, underperforming the S&P 500 which gained 1% [1] - Over the past month, LPX shares increased by 12.03%, contrasting with the Construction sector's decline of 3.14% and the S&P 500's drop of 2.14% [1] Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $0.74, reflecting a 4.23% increase from the same quarter last year [2] - Revenue is expected to be $653.85 million, indicating a 0.63% decrease compared to the prior year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Louisiana-Pacific are being monitored, as they often indicate changes in near-term business trends [3] - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988 [5] - Louisiana-Pacific currently holds a Zacks Rank of 3 (Hold), with a 4.63% increase in the Zacks Consensus EPS estimate over the past month [5] Valuation Metrics - Louisiana-Pacific has a Forward P/E ratio of 21.53, which is lower than the industry's average Forward P/E of 23.18, indicating a valuation discount [6] - The company has a PEG ratio of 1.4, compared to the Building Products - Wood industry's average PEG ratio of 2.29 [7] Industry Context - The Building Products - Wood industry, part of the Construction sector, has a Zacks Industry Rank of 84, placing it in the top 34% of over 250 industries [8] - Research indicates that industries in the top 50% rated by Zacks outperform those in the bottom half by a factor of 2 to 1 [8]

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Sty ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Louisiana-Pacific (LPX) , which belongs to the Zacks Building Products - Wood industry.When looking at the last two reports, this home construction supplier has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 25.50%, on average, in the last two quarters.For the most recent quarter, Louisiana-Pacific was expected ...

The latest trading session saw Louisiana-Pacific (LPX) ending at $106.55, denoting a -0.75% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.The home construction supplier's shares have seen a decrease of 7.94% over the last month, surpassing the Construction sector's loss of 11.66% and falling behind the S&P 500's loss of 2.8%.Investors will be eagerly watchi ...

In the latest market close, Louisiana-Pacific (LPX) reached $103.39, with a -1.32% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.11%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.49%.Coming into today, shares of the home construction supplier had lost 10.18% in the past month. In that same time, the Construction sector lost 10.86%, while the S&P 500 gained 0.4%.The investment community will be paying close attention to t ...

Louisiana-Pacific (LPX) ended the recent trading session at $104.77, demonstrating a -0.3% swing from the preceding day's closing price. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 0.05%.The home construction supplier's shares have seen a decrease of 9.9% over the last month, surpassing the Construction sector's loss of 11.56% and falling behind the S&P 500's gain of 1.05%.The investment communi ...

Louisiana-Pacific Corporation (LPX) , or LP’s, share price performance seems to have been gaining over the past three months. During the same time bracket, the company gained 12%, outperforming the Zacks Building Products - Wood industry, Zacks Construction sector and the S&P 500 Index. The detailed price performance is shown in the chart below.Image Source: Zacks Investment ResearchThis American building materials manufacturer’s performance is benefiting from the strategic supply agreement with Lennar, cos ...