Group 1 - ARMOUR Residential REIT, Inc. (ARR) has been added to the Zacks Rank 5 (Strong Sell) List due to a 1.6% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Archer-Daniels-Midland Company (ADM) is also on the Zacks Rank 5 (Strong Sell) List, with an 8.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Boise Cascade Company (BCC) has been included in the Zacks Rank 5 (Strong Sell) List, reflecting a 7.7% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Core Viewpoint - Louisiana-Pacific reported mixed Q3 2025 results, with adjusted earnings missing estimates while net sales exceeded expectations, indicating challenges in the OSB segment [2][3]. Earnings and Revenue Overview - Adjusted EPS was 36 cents, missing the Zacks Consensus Estimate of 37 cents by 2.7% and down 70% year over year from $1.22 [3]. - Consolidated net sales reached $663 million, surpassing the consensus mark of $656 million by 1.1%, but down 8.2% from $722 million a year ago, primarily due to lower OSB prices [3]. Segment Performance - Siding segment sales grew 5% year over year to $443 million, with adjusted EBITDA slightly declining to $117 million and a margin of 26% [4]. - OSB segment sales fell 29% to $179 million, resulting in an adjusted EBITDA loss of $27 million compared to a $33 million profit last year [4]. - LP South America reported sales of $39 million, down 17% year over year, with adjusted EBITDA halving to $5 million [4]. Margins and Profitability Metrics - Gross profit decreased 33% year over year to $129 million, with gross margin contracting by 440 basis points to 19.4% [5]. - Adjusted EBITDA fell to $82 million, down 46% from $153 million last year, with an adjusted EBITDA margin of 12.4% compared to 21.2% a year ago [5]. - Adjusted operating profit sharply declined to $18 million, representing an adjusted operating margin of 2.7% versus 16.1% in the prior-year period [5]. Balance Sheet & Shareholder Returns - As of September 30, 2025, LP had cash and cash equivalents of $316 million and total liquidity of $1.1 billion, with long-term debt at $348 million [6]. - The company invested $84 million in capital expenditures and paid $19 million in dividends, with no share repurchases during the quarter [6]. Q4 & 2025 Outlook - For Q4 2025, LP anticipates Siding net sales of nearly $370 million (up 3%) and adjusted EBITDA of approximately $82 million (22% margin) [7]. - For the full year 2025, guidance includes Siding adjusted EBITDA of about $430 million (26% margin) and consolidated adjusted EBITDA of nearly $420 million [8]. Estimate Trends - Recent estimates have shown a downward trend, with the consensus estimate shifting down by 61.29% [9]. VGM Scores - Louisiana-Pacific has a Growth Score of B but lags in Momentum with a D and Value with a D, resulting in an aggregate VGM Score of C [10]. Industry Performance - Louisiana-Pacific is part of the Zacks Building Products - Wood industry, where Boise Cascade has gained 5% over the past month, despite reporting a year-over-year revenue decline of 2.7% [12].

Core Insights - U.S. equity markets are experiencing strong positive momentum driven by optimism regarding potential interest rate cuts by the Federal Reserve [1][5] - Major stock indexes are showing significant gains, with the Dow Jones Industrial Average up approximately 0.5%, the S&P 500 up 1.4%, and the Nasdaq Composite up 2.3% [2][3][4] Market Performance - The Dow Jones Industrial Average (DJIA) has increased by around 215 points, reflecting a nearly 1.3% advance over the last two trading sessions [2] - The S&P 500 has surged 1.4% today, building on a previous gain of 0.7% [3] - The Nasdaq Composite has risen 2.3% in midday trading, marking a significant recovery from a 2.7% decline the previous week [4] Economic Indicators - Market momentum is largely influenced by expectations of a December Federal Reserve interest rate cut, with a 77% likelihood of a 25-basis-point cut predicted by the CME FedWatch tool [5] - A series of economic data releases are anticipated this week, including delayed October U.S. retail sales and Producer Price Index (PPI) readings [7] Corporate Developments - Notable companies reporting earnings this week include Best Buy, Dell Technologies, Alibaba, and others, with Alibaba's shares gaining 4.7% in Hong Kong trading due to strong demand for its updated Qwen AI application [11][12] - Nvidia is in focus as reports suggest U.S. officials may allow the sale of its H200 AI chips to China, contributing to a 1.2% increase in its stock [10] - Diversified Energy Company has completed its acquisition of Canvas Energy, enhancing its production capabilities [12] Stock News - Novo Nordisk shares fell significantly after its oral semaglutide failed in late-stage Alzheimer's trials [9] - Deutsche Bank announced plans to issue Additional Tier 1 (AT1) capital instruments to support its capital ratios [13] - Zacks Investment Research identified Bank OZK, Boise Cascade Company, and Cool Company Ltd. as "Strong Sell" stocks due to downward earnings revisions [13]

Take a look at today's bull of the day. A Zach's ranked number one, strong buy. And today's bear of the day, a Zach's rank number five, strong cell.Visit zachs. com/bull to get seven stocks set to outperform the market over the next 30 days. ...

Core Viewpoint - Boise Cascade Company (NYSE:BCC) is facing challenges due to its connection to the housing market, which is currently underperforming. The company is considered too leveraged to a specific segment of the market, making it less favorable compared to larger home improvement retailers, especially in the context of potential Federal Reserve rate cuts [1]. Group 1: Company Overview - Boise Cascade Company manufactures engineered wood products and plywood, and distributes building materials such as lumber, siding, roofing, and millwork [2]. - Third Avenue Management has initiated new positions in Boise Cascade Company, indicating interest in the building materials distributor and manufacturer [2].

Group 1: Doximity, Inc. (NYSE:DOCS) - Doximity reported quarterly earnings of 45 cents per share, exceeding the analyst consensus estimate of 38 cents per share [1] - The company achieved quarterly sales of $168.525 million, surpassing the analyst consensus estimate of $157.614 million [1] - Jim Cramer advised waiting before purchasing Doximity shares, stating they are "still too expensive" [1] Group 2: IREN Limited (NASDAQ:IREN) - IREN reported quarterly earnings of $1.08 per share, significantly beating the consensus estimate of 14 cents [2] - The company's quarterly revenue was $240.3 million, exceeding the Street estimate of $235.5 million and up from $49.57 million in the same period last year [2] - Jim Cramer recommended selling half of IREN stock [2] Group 3: Boise Cascade Company (NYSE:BCC) - Boise Cascade reported quarterly earnings of 58 cents per share, missing the analyst consensus estimate of 76 cents per share [3] - The company reported quarterly sales of $1.668 billion, which beat the analyst consensus estimate of $1.623 billion [3] - Jim Cramer expressed concerns about the housing sector and suggested that Boise Cascade is too leveraged to a specific part of the market [3] Group 4: Price Action - Doximity shares fell 3.3% to settle at $50.96 [5] - IREN shares declined 2.9% to close at $55.70 [5] - Boise Cascade shares rose 0.9% to settle at $70.28 [5]

Core Insights - Boise Cascade's third quarter results showed a positive market reaction despite lower earnings, with revenue exceeding Wall Street expectations due to steady demand in general line product categories and expanded next-day delivery services [1][3] - CEO Nate Jorgensen noted that customer reliance on Boise Cascade's distribution network helped mitigate volume and pricing challenges in the wood products segment [1] - Ongoing investments in capacity and strategic partnerships contributed to stable business operations during a period of industry softness [1] Financial Performance - Revenue for Q3 was $1.67 billion, surpassing analyst estimates of $1.62 billion, representing a 2.7% year-on-year decline but a 3.1% beat [6] - Adjusted EPS was $0.58, missing analyst expectations of $0.69 by 15.7% [6] - Adjusted EBITDA was $74.38 million, in line with analyst estimates of $74.47 million, with a margin of 4.5% [6] - Operating margin decreased to 1.9%, down from 6.8% in the same quarter last year [6] - Market capitalization stood at $2.62 billion [6] Analyst Insights - Analysts raised questions regarding share gains in general line products, with growth attributed to investments in capacity and partnerships [6] - Constraints on BMD segment margins were discussed, with management citing product mix improvements and operational flexibility as key factors [6] - Price stabilization in EWP and channel inventory levels were addressed, indicating reduced competitive pressure and balanced inventories could support price recovery [6] - The impact of new supplier partnerships, particularly with James Hardie, was highlighted as a driver of new revenue in untapped markets [6] - Recent declines in distribution EBITDA margins were attributed to seasonal sales patterns rather than structural shifts, with confidence expressed in a return to normalized margins as volumes recover [6]

Core Insights - Third Avenue Management's "Third Avenue Small-Cap Value Fund" reported a return of 7.18% in Q3 2025, underperforming the MSCI USA Small-Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [1] - The fund's performance was positively influenced by contributions from a diverse range of businesses [1] Company Highlights - Boise Cascade Company (NYSE:BCC) was highlighted as a key stock in the fund's Q3 2025 investor letter, involved in the distribution and manufacturing of building materials and engineered wood products [2][3] - Over the last month, Boise Cascade Company (NYSE:BCC) experienced a return of -3.40%, and its stock price decreased by 49.32% over the past 52 weeks, closing at $71.38 on November 5, 2025, with a market capitalization of $2.644 billion [2]

Core Insights - Weyerhaeuser reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, and showing an increase from earnings of $0.05 per share a year ago, resulting in an earnings surprise of +185.71% [1] - The company achieved revenues of $1.72 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.12% and showing growth from $1.68 billion in the same quarter last year [2] - Weyerhaeuser shares have declined approximately 17.6% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is -$0.09 on revenues of $1.57 billion, while for the current fiscal year, the estimate is $0.08 on revenues of $6.87 billion [7] Industry Context - The Building Products - Wood industry, to which Weyerhaeuser belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Weyerhaeuser's stock performance [5]

Performance Overview - The Third Avenue Small-Cap Value Fund returned 7.18% in Q3 2025, underperforming the MSCI USA Small Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [2] - The Fund's annualized returns for the trailing three-year and five-year periods were 15.11% and 16.09%, respectively [2] Positive Contributors - Supernus Pharmaceuticals (SUPN) was the largest positive contributor, benefiting from a strong financial position, profitability, an expanding neurology drug portfolio, and a successful acquisition [3] - Investors Title Company (ITIC) saw positive performance due to increased real estate refinancing activity [3] - UMB Financial Corporation (UMBF) successfully integrated its acquisition of Heartland Financial, showcasing operational competence [3] Negative Contributors - Atlanta Braves Holdings (BATRA) was a negative contributor, though it is perceived to have an attractive asset base and potential for favorable resource conversion [4] - UniFirst Corporation (UNF) faced pressure to demonstrate its value proposition after rejecting an acquisition offer from Cintas Corporation (CTAS) [4] - FRP Holdings (FRPH) was impacted by a lack of confidence in government spending affecting the D.C. metro area [4] Investment Strategy - The Fund focuses on acquiring companies in transitional states, aiming to capitalize on undervalued businesses with potential for future growth [5] - Investment activity emphasizes companies that are well-financed, trading at discounts to net asset value, and have identifiable levers for value creation [6] - The Fund's turnover rate is approximately 20%, indicating a long-term investment horizon of about five years, contrasting with the average turnover of 91.7% in the small-cap value fund universe [7] Types of Investment Opportunities - The Fund identifies three broad types of investment opportunities: 1. Companies facing industry-wide headwinds that can improve through restructuring [9] 2. Companies with current economic returns that have underappreciated self-help opportunities [9] 3. Event-driven situations that offer unique return profiles through transformational changes [9] Recent Transactions - Ambac Financial (AMBC) completed the sale of its legacy financial guarantee business, leading to a significant cash inflow and a transformation towards insurance distribution [11][12] - The Fund initiated new positions in Boise Cascade (BCC) and Rogers Corporation (ROG) during the quarter, while also adding to existing positions like UniFirst Corporation (UNF) [14] Company Profiles - Boise Cascade is a leading manufacturer and distributor of building materials, facing challenges due to slowing housing activity but retaining a strong financial position [15][16] - Rogers Corporation specializes in electronic and materials technology solutions, facing growth challenges but possessing valuable intellectual property and a strong balance sheet [18][19][20]