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Louisiana-Pacific (LPX) Stock Sinks As Market Gains: Here's Why
Louisiana-PacificLouisiana-Pacific(US:LPX) ZACKSยท2025-01-18 00:05

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]