Louisiana-Pacific (LPX) Stock Drops Despite Market Gains: Important Facts to Note

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]