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 ...

Louisiana-Pacific (LPX) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this home construction supplier have returned +24.5% over the past month versus the Zacks S&P 500 composite's +5% change. The Zacks Building Products - Wood industry, to which Louisiana-Pacific belongs, has lost 0.3% over this period. Now the key question is: Where could the stock be headed in the near t ...

Although spending on home repair and remodel (R&R) activities has decreased from the peaks seen during the pandemic, given high rates and dwindling consumer confidence, there remains a persistent need for investment in critical replacements, addressing home performance deficiencies, and modernization efforts in the nation's aging homes. Fortunately, the pace of market decline is projected to slow down in the latter half of 2024. Residential remodeling is anticipated to capitalize on the recovering housing m ...

Louisiana-Pacific (LPX) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this home construction supplier, should get reflected in its stock price. After all, empirical research shows a strong corre ...

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This housing-related company bucked the market and raised full-year guidance.Shares in siding and oriented strand board (OSB) company Louisiana-Pacific (LPX -1.33%) had risen by 17.1% for the week as of Friday morning. The little-followed stock is part of Warren Buffett's Berkshire Hathaway portfolio.That startling rise in the share price was powered by an excellent set of first-quarter results that saw Louisiana-Pacific blow past its guidance and led management to significantly boost its full-year guidance ...

Louisiana-Pacific Corporation (LPX) , or LP, reported impressive first-quarter 2024 results. Earnings and net sales beat their respective Zacks Consensus Estimate and increased on a year-over-year basis.LPX’s shares soared 20.8% during the trading session on May 8, 2024.The impressive first-quarter 2024 performance was primarily propelled by several key factors. Notably, there was a notable surge in demand for Siding and OSB, highlighted by a significant increase in volume. Record-breaking volumes for Exper ...