The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 214, placing it within the bottom 16% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual 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. Investors should also note any recent changes to analyst ...

Core Viewpoint - Louisiana-Pacific Corporation (LPX) is experiencing growth driven by its focus on the Siding business, strategic transformation initiatives, and efforts to enhance shareholder returns [1][6]. Performance Summary - Shares of LPX increased by 23.7% year-to-date, outperforming the Zacks Building Products – Wood industry's decline of 9.3%, the Zacks Construction sector's growth of 10%, and the S&P 500 Index's rise of 17% [1]. - The trailing 12-month Return on Equity (ROE) stands at 20.9%, surpassing the industry's 15.8%, indicating efficient use of shareholders' funds [2]. Earnings Estimates - The Zacks Consensus Estimate for LPX's second-quarter earnings per share (EPS) has decreased to $1.88 from $2.02, and for 2024, it has dropped to $5.31 from $5.79 over the past week [3]. Growth Drivers - LPX has launched new products such as Brushed Smooth, Trim and Siding, Pebbled Stucco Panels, and Nickel Gap, which are expected to enhance the price mix and support growth in new residential construction and repair/remodel sectors [4]. - The adjusted EBITDA for the first quarter of 2024 rose by 175.8% year-over-year to $182 million [5]. - The company has been increasing its Siding capacity and opening new facilities to meet rising demand and expand into new markets [4]. Shareholder Returns - LPX has consistently improved shareholder returns through share repurchases and dividends, increasing its quarterly cash dividend by 8.3% to 26 cents per share on February 9, 2024 [6]. - The company aims to return at least 50% of cash flow from operations exceeding capital expenditures to shareholders over time [6]. Business Transition - LPX is transitioning from a commodity producer to a more stable cash-generative business by focusing on revenue and EBITDA growth, particularly in the Siding unit, while also reducing costs [18]. - The company is enhancing mill efficiency and optimizing supply chain practices to improve productivity and reduce infrastructure costs [18]. Valuation - LPX's forward 12-month P/E ratio is 16.91X, which is below the industry average of 21.55X, indicating potential undervaluation and attractiveness to investors [21]. Challenges - The company faces risks from fluctuating Oriented Strand Board (OSB) prices, which accounted for 43.2% of sales in the first quarter, potentially impacting top-line growth [8]. - Increasing costs related to marketing investments and new product introductions have pressured performance, with costs of sales rising to $511 million from $483 million year-over-year [23].

Company Performance - Louisiana-Pacific (LPX) closed at $85.66, reflecting a +1.77% increase from the previous day, outperforming the S&P 500's gain of 0.55% [1] - Over the past month, LPX shares have decreased by 10.09%, underperforming the Construction sector's gain of 1.99% and the S&P 500's gain of 4.28% [1] Upcoming Earnings - Louisiana-Pacific is set to announce its earnings on August 7, 2024, with an expected EPS of $2.02, indicating a 267.27% growth compared to the same quarter last year [2] - The consensus estimate for revenue is $814.05 million, representing a 33.23% increase from the prior-year quarter [2] Full Year Estimates - For the full year, analysts expect earnings of $5.79 per share and revenue of $3.02 billion, marking changes of +79.81% and +17.03% respectively from last year [3] Analyst Estimates - Recent modifications to analyst estimates for Louisiana-Pacific indicate changing near-term business trends, with positive alterations suggesting analyst optimism regarding the company's business and profitability [4] Stock Performance and Zacks Rank - Adjustments in estimates are correlated with imminent stock price performance, and Louisiana-Pacific currently holds a Zacks Rank of 2 (Buy) [5][6] - The Zacks Consensus EPS estimate has increased by 0.04% in the past month [6] Valuation Metrics - Louisiana-Pacific is trading at a Forward P/E ratio of 14.54, which is a discount compared to its industry's Forward P/E of 22.45 [7] - The company has a PEG ratio of 10.93, while the average PEG ratio for the Building Products - Wood industry is 3.22 [7] Industry Context - The Building Products - Wood industry, part of the Construction sector, has a Zacks Industry Rank of 195, placing it in the bottom 23% of over 250 industries [8] - Top-rated industries outperform the bottom half by a factor of 2 to 1 [8]

What are the Zacks Style Scores? Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks. Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stoc ...

Company Overview - Louisiana-Pacific's shares have decreased by 11.35% over the last month, underperforming the Construction sector's loss of 3.35% and the S&P 500's gain of 4.34% [3] - The company currently holds a Zacks Rank of 1 (Strong Buy), with a history of outperforming, as 1 stocks have returned an average annual gain of +25% since 1988 [5] Financial Performance - For the full year, Zacks Consensus Estimates project earnings of $5.79 per share and revenue of $3.02 billion, representing changes of +79.81% and +17.03% from the prior year [4] - The upcoming earnings disclosure is expected to show earnings per share (EPS) of $2.02, reflecting a 267.27% increase from the same quarter last year, with revenue projected at $814.05 million, up 33.23% from the prior-year quarter [9] Valuation Metrics - Louisiana-Pacific has a PEG ratio of 10.49, compared to the Building Products - Wood industry's average PEG ratio of 6.25, indicating a higher valuation relative to growth expectations [6] - The company has a Forward P/E ratio of 13.95, which is significantly lower than the industry average Forward P/E of 28.01, suggesting that Louisiana-Pacific is trading at a discount to its peers [11] Industry Context - The Building Products - Wood industry is part of the Construction sector and currently holds a Zacks Industry Rank of 78, placing it in the top 31% of all 250+ industries [12] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Overview - Louisiana-Pacific's upcoming earnings release is highly anticipated, with projected earnings per share (EPS) of $2.02, indicating a 267.27% increase year-over-year [1] - Revenue is estimated at $814.05 million, reflecting a 33.23% increase from the same quarter last year [1] - For the full year, analysts expect earnings of $5.79 per share and revenue of $3.02 billion, marking changes of +79.81% and +17.03% respectively from the previous year [10] Valuation Metrics - Louisiana-Pacific has a PEG ratio of 10.74, compared to the Building Products - Wood industry's average PEG ratio of 6.91 [3] - The company holds a Forward P/E ratio of 14.28, which is significantly lower than the industry average Forward P/E of 28.02, indicating it is trading at a discount [7] Stock Performance - Over the last month, Louisiana-Pacific's shares have decreased by 6.98%, underperforming the Construction sector's loss of 5% and the S&P 500's gain of 3.38% [5] - The most recent trading session closed with Louisiana-Pacific at $82.39, reflecting a -0.34% change from the previous day's closing [9] Analyst Sentiment - Recent revisions to analyst forecasts for Louisiana-Pacific are crucial, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [6] - The company currently holds a Zacks Rank of 1 (Strong Buy), with a notable track record of outperforming, as stocks rated 1 have produced an average annual return of +25% since 1988 [11] Industry Context - The Building Products - Wood industry, part of the Construction sector, currently ranks 162 in the Zacks Industry Rank, placing it in the bottom 36% of over 250 industries [12] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Louisiana-Pacific (LPX) has been beaten down lately with too much selling pressure. While the stock has lost 7% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of ...

Core Insights - The Zacks Construction sector and S&P 500 Index have shown gains of 5.6% and 14.9% respectively year-to-date [1] - Louisiana-Pacific Corporation (LPX) has experienced a stock increase of 21.2% this year, outperforming the Zacks Building Products – Wood industry's decline of 8.1% [7] Financial Performance - EPS estimates for 2024 have risen to $5.79 from $4.47 over the past 60 days, indicating a year-over-year growth of 79.8%, with revenues expected to grow by 17% [2] - In the last reported quarter, both EPS and net sales exceeded Zacks Consensus Estimates and showed year-over-year growth, driven by increased demand for Siding and OSB products [3] Market Demand and Growth Drivers - There is a strong demand for SmartSide and Structural Solutions, which has continued into Q2 2024, prompting LP to revise its projections upward for both Q2 and full-year 2024 [6] - The company is focusing on increasing the penetration of Siding products in repair/remodeling markets, which are less sensitive to housing market cycles [10][17] Revenue and EBITDA Guidance - For 2024, LP expects Siding Solutions' revenues to rise by 11-13% from 2023, up from an earlier projection of 8-10%, with consolidated adjusted EBITDA projected between $655 million and $685 million [12] - The second quarter of 2024 is expected to see Siding Solutions' revenues grow by 20-25% year-over-year, with consolidated adjusted EBITDA anticipated to be between $220 million and $240 million [21] Strategic Initiatives - LP has achieved a $1.2 billion growth in adjusted EBITDA from 2019 to 2022 and is now focusing on enhancing operational efficiency and productivity [13][22] - The company is transforming from a commodity producer to a more stable, cash-generative business through strategic acquisitions and divestitures, including the acquisition of the Wawa OSB mill [23] Shareholder Returns - LP has been actively enhancing shareholder returns through share repurchases and dividends, with an additional $250 million authorized for stock repurchases [14][24] - The quarterly cash dividend was increased by 8.3% to 26 cents per share, with a commitment to return at least 50% of cash flow from operations in excess of capital expenditures to shareholders [24]

A month has gone by since the last earnings report for Louisiana-Pacific (LPX) . Shares have added about 7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Louisiana-Pacific due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Louisiana-Pacific Q1 Earnings & Sales Beat, ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...