Louisiana-Pacific (LPX) Laps the Stock Market: Here's Why

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]