We recently published 10 Stocks Turning Heads With Double-Digit Returns. QXO Inc. (NYSE:QXO) was one of the best performers on Wednesday. QXO climbed to a new 52-week high on Wednesday as investors supported plans to acquire Kodiak Building Partners for $2.25 billion. At intra-day trading, the stock jumped to as high as $27.14 before paring gains to finish the session just up by 16.59 percent at $27.06 apiece. In a statement on the same day, QXO Inc. (NYSE:QXO) said that it inked a definitive agreement ...

Core Insights - Weyerhaeuser has seen significant changes in institutional ownership, with several hedge funds increasing their stakes in the company, indicating positive sentiment among institutional investors [1][5] - Insider trading activity includes CEO Devin W. Stockfish selling 90,162 shares, representing an 8.09% decrease in his position, while Director Sara Grootwassink Lewis increased her holdings by 20.95% [2] - Analysts have mixed ratings on Weyerhaeuser, with a consensus rating of "Hold" and a target price of $28.50, reflecting varied expectations for the company's future performance [3] Institutional Ownership - Goldman Sachs increased its stake by 18.2%, owning 2,249,932 shares valued at $65.88 million after purchasing 346,571 shares [1] - Empowered Funds raised its holdings by 3.4%, now owning 46,049 shares worth $1.35 million [1] - Intech Investment Management increased its position by 5.9%, owning 56,265 shares valued at $1.65 million [1] - HB Wealth Management raised its holdings by 3.3%, now owning 20,970 shares worth $539,000 [1] - Trust Co. of Vermont lifted its stake by 17.6%, owning 11,156 shares valued at $287,000 [1] - Institutional investors and hedge funds collectively own 82.99% of Weyerhaeuser's stock [1] Insider Activity - CEO Devin W. Stockfish sold 90,162 shares at an average price of $23.33, totaling approximately $2.10 million, reducing his holdings to 1,024,861 shares valued at $23.91 million [2] - Director Sara Grootwassink Lewis purchased 4,500 shares at an average cost of $23.61, totaling $106,245, increasing her holdings to 25,978 shares valued at $613,340 [2] - Insiders currently own 0.27% of the stock [2] Analyst Ratings - UBS Group reiterated a "buy" rating on Weyerhaeuser [3] - Bank of America maintained a "neutral" rating with a price target reduced from $29.00 to $26.00 [3] - DA Davidson lowered its price target from $35.00 to $31.00 while maintaining a "buy" rating [3] - JPMorgan Chase cut its price target from $28.00 to $27.00, rating the stock as "overweight" [3] - Weiss Ratings issued a "sell (d+)" rating [3] - Six analysts rated the stock as "Buy," three as "Hold," and two as "Sell" [3] Financial Performance - Weyerhaeuser reported earnings of ($0.09) per share, beating estimates of ($0.13) by $0.04 [7] - The company had a net margin of 4.69% and a return on equity of 1.50% [7] - Revenue for the quarter was $1.54 billion, down 9.8% year-over-year, compared to estimates of $1.58 billion [7] - Analysts expect Weyerhaeuser to post earnings of $0.78 per share for the current fiscal year [7] Dividend Information - Weyerhaeuser announced a quarterly dividend of $0.21, representing an annualized dividend of $0.84 and a yield of 3.3% [8] - The payout ratio is currently 190.91% [8] Company Overview - Weyerhaeuser Company is a leading integrated forest products company, primarily involved in timberland ownership and forest products manufacturing [9] - The company manages large tracts of timberland and produces a range of building materials, including lumber and engineered wood products [9]

Core Insights - Weyerhaeuser Company (WY) reported mixed fourth-quarter 2025 results, with earnings exceeding estimates but net sales falling short [1][6]. Financial Performance - Adjusted loss per share was 9 cents, beating the Zacks Consensus Estimate of 13 cents, while net sales were $1.54 billion, missing the consensus mark by 2.7% and down 9.9% year-over-year [6][10]. - Adjusted EBITDA was $140 million, a decline of 52.4% from $294 million in the previous year [6][10]. - For the full year 2025, net sales totaled $6.91 billion, down from $7.12 billion in 2024, and adjusted EBITDA was $1.02 billion compared to $1.29 billion in 2024 [11]. Segment Performance - Timberlands segment net sales were $487 million, down from $497 million year-over-year, with adjusted EBITDA of $114 million, a decrease of 9.5% [7]. - Real Estate, Energy and Natural Resources segment saw net sales of $103 million, up 19.8% from $86 million in the prior year, with adjusted EBITDA increasing to $95 million from $76 million [8]. - Wood Products segment sales were $1.1 billion, down 14.1% from $1.26 billion year-over-year, with an adjusted EBITDA loss of $20 million compared to earnings of $161 million in the previous year [9]. Strategic Actions - The company divested 28,000 acres in Oregon for $190 million and approximately 86,000 acres in Georgia and Alabama for $216 million, optimizing its portfolio through capital-efficient transactions [3]. - Weyerhaeuser is positioned to navigate current market challenges with a strong balance sheet and a flexible capital allocation framework, executing its refreshed 2030 strategy [4]. Market Outlook - For Q1 2026, Timberlands segment earnings and adjusted EBITDA are expected to be comparable to Q4 levels, with slight increases in sales volumes and stable domestic log realizations [13]. - The Real Estate, Energy and Natural Resources segment anticipates a sequential earnings increase of approximately $75 million, with adjusted EBITDA rising by about $90 million [14]. - In the Wood Products segment, earnings and adjusted EBITDA are expected to be slightly higher than Q4 levels, with anticipated increases in sales volumes and lower manufacturing costs [15].

Core Insights - Weyerhaeuser Company (WY) is expected to report fourth-quarter 2025 results on January 29, reflecting ongoing challenges in the housing and wood products market [1] - The company has consistently beaten earnings estimates in three of the last four quarters, with an average surprise of 65.7% [2] Earnings Estimates - The Zacks Consensus Estimate for the upcoming quarter's loss per share has widened to 13 cents from 12 cents, compared to an earnings per share (EPS) of 11 cents in the same quarter last year [3] - The consensus for net sales is projected at $1.58 billion, indicating a 7.2% year-over-year decline [3] Factors Influencing Q4 Results - Revenues are likely pressured by seasonally softer housing and repair-and-remodel activity, impacting demand in the Wood Products segment, which accounted for approximately 71.5% of third-quarter 2025 net sales [4] - Lumber and oriented strand board (OSB) pricing remained near historically low levels, with a 10% sequential decline in lumber output expected due to weaker market conditions [4] - The Timberlands segment's revenue trends are mixed, with domestic log demand softening in the Western region but stable demand in the U.S. South [6] Segment Performance - Wood Products segment net sales are expected to decline 9.7% year-over-year to $1.14 billion, with adjusted EBITDA projected to drop 96.2% to $6.1 million [5] - Timberlands segment net sales are anticipated to grow 2.9% to $511.4 million, while adjusted EBITDA is expected to decline 6.2% to $118.2 million [7] - The Real Estate, Energy and Natural Resources segment's net sales are projected to be $81.8 million, down 4.9% year-over-year, with adjusted EBITDA expected to increase 1.7% to $77.3 million [10] Margin Performance - Overall margin performance in Q4 is expected to remain under pressure, particularly in Wood Products, due to weak lumber and OSB pricing and lower operating rates [11] - Cost offsets, including a decline in log and fiber costs, are expected to cushion earnings volatility [12] Earnings Prediction Model - The model does not predict an earnings beat for Weyerhaeuser this time, with an Earnings ESP of -27.28% and a Zacks Rank of 3 [13]

Core Insights - Heartland Advisors' "Heartland Value Plus Fund" reported a decline of 0.10% in Q4 2025, underperforming the Russell 2000® Value Index, which gained 3.26% [1] - The fund identified opportunities in overlooked firms expected to achieve high earnings growth in 2026, despite a pullback in the AI sector due to overinvestment concerns [1] Company Analysis - Builders FirstSource, Inc. (NYSE:BLDR) was highlighted as a significant stock in the fund's Q4 2025 letter, with a one-month return of 18.56% but a 52-week loss of 15.29% [2] - As of January 12, 2026, Builders FirstSource, Inc. had a market capitalization of $13.721 billion, with shares closing at $124.08 [2] - The company is recognized as the largest distributor of lumber and building products for contractors and home builders, focusing on consolidating smaller regional lumberyards and enhancing value-added products [3]

Core Viewpoint - West Fraser Timber Co. Ltd. will record a non-cash impairment of approximately $409 million in its Lumber segment goodwill for Q4-2025 due to ongoing challenging economic conditions [2] Financial Performance - The impairment reflects a recalibration of assumptions in the annual goodwill impairment test, influenced by species-specific product pricing trends, lower demand for wood chip residuals, and the anticipated depth and duration of the current downcycle [2] - The impairment represents the entire amount of goodwill associated with the Company's U.S. lumber operations [2] Operational Guidance for 2026 - SPF shipments are targeted to be between 2.4 to 2.7 billion board feet [6] - SYP shipments are also targeted to be between 2.4 to 2.7 billion board feet [6] - N.A. OSB shipments are expected to be between 5.9 to 6.3 billion square feet (3/8-inch basis) [6] - European and U.K. OSB shipments are projected to be between 1.0 to 1.25 billion square feet (3/8-inch basis) [6] - Input costs, including resins and chemicals, are expected to remain stable, while contractor availability and capital equipment lead times are anticipated to improve [6] - Capital expenditures are expected to be in the range of $300 to $350 million [6] Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the U.S., the U.K., and Europe, focusing on sustainable forest practices [4] - The Company produces a variety of products including lumber, engineered wood products, pulp, newsprint, and wood chips, which are utilized in home construction, industrial applications, and paper products [4]

Industry Overview - The Zacks Building Products – Wood industry is facing challenges due to rising construction costs, housing project delays, and affordability constraints impacting demand [1][4] - The industry includes companies involved in manufacturing lumber and wood products for home construction, repair, and outdoor structures, as well as timberland REITs [3] Current Trends - High interest rates and trade policies are constraining the U.S. housing market, leading to low buyer urgency and limited residential remodeling activity [4] - The reimplementation of tariffs on Canadian softwood lumber has significant implications for the U.S. wood industry, maintaining cost pressures on domestic producers [5] - Volatility in lumber prices remains a concern, affecting inventory costs and profit margins for primary producers [6] Investment Opportunities - There is a strong need for investments in critical replacements and modernization of aging housing stock, supported by increased funding for infrastructure and carbon/ESG projects [2][7] - Companies are focusing on acquisitions, product innovation, and efficient cost-reduction strategies to enhance portfolio quality and operational excellence [8][9] Industry Performance - The Zacks Building Products – Wood industry ranks 215, placing it in the bottom 12% of over 250 Zacks industries, indicating bleak near-term prospects [10][11] - The industry's earnings estimates for 2026 have decreased from $2.14 to $2.02 per share, reflecting a loss of confidence in earnings growth potential [12] Historical Performance - Over the past year, the industry has gained 6.5%, outperforming the broader Zacks Construction sector's 6% rise but lagging behind the S&P 500's 19.5% gain [14] - The industry currently trades at a forward P/E ratio of 28.47, higher than the S&P 500's 23.36 and the sector's 19.87 [17] Company Highlights - **Rayonier**: A leading timberland REIT with a favorable outlook due to its diversified timberland portfolio and planned merger with PotlatchDeltic, expected to enhance operational efficiency [20] - Rayonier has seen an upward estimate revision for 2026 earnings to $0.57 from $0.56 per share, with a projected 20.6% year-over-year growth [21] - **Weyerhaeuser**: The company is positioned to benefit from long-term demand drivers despite near-term challenges, with confidence in U.S. housing fundamentals and ongoing optimization of its timberlands portfolio [25] - Weyerhaeuser's 2026 earnings estimate has been revised upward to $0.21 from $0.20 per share, implying a 39.8% year-over-year growth [26]

Core Viewpoint - Doman Building Materials Group Ltd. has successfully completed the early redemption of its outstanding 5.25% senior unsecured subordinated notes, strengthening its balance sheet and demonstrating its commitment to debt retirement strategies [1][2]. Company Overview - Doman Building Materials Group Ltd. was founded in 1989 and is headquartered in Vancouver, British Columbia, trading on the Toronto Stock Exchange under the symbol DBM [3]. - The company is recognized as Canada's premier national distributor in the building materials sector, operating multiple divisions and distribution centers across Canada and the United States [3]. Operations and Distribution - Doman operates distribution centers coast-to-coast in Canada and has multiple treating plants near major cities [4]. - In the United States, Doman Lumber operates 21 treating plants and several specialty facilities across nine states, while Doman Tucker Lumber serves the U.S. east coast with three treating plants [4]. - The company also has a presence on the U.S. west coast and in Hawaii, with various locations servicing the building materials market [4].

Weyerhaeuser Company (NYSE:WY) 2025 Investor Day Summary Company Overview - Weyerhaeuser has over 125 years of experience as a leader in sustainable forestry, land management, and wood products manufacturing [2][3] - The company is positioned for accelerated growth through innovation, operational excellence, and leveraging emerging technologies [2][3] Key Themes and Growth Strategy - The focus is on two main themes: building a strong operational foundation and launching a multi-year growth program [4][5] - The growth program aims to deliver an incremental $1.5 billion of Adjusted EBITDA by 2030 over a 2024 baseline, improving cash flow per share and reducing volatility [5][25] Timberlands Business - Weyerhaeuser is the largest private owner of timberlands in North America, with 10.4 million acres in the U.S. and 13 million acres in Canada [6] - The timberlands business generates approximately $1 billion of EBITDA per year, providing a sustainable base for dividends and financial strength [15] - The company has a competitive advantage through its scale, quality, and diversity of its timber portfolio [11][48] Operational Excellence and Cost Discipline - Weyerhaeuser has focused on cost discipline and operational excellence, achieving industry-leading margins and strong brand recognition [7][23] - The company has returned nearly $7.5 billion to shareholders over the past decade, including a 5% annual increase in base dividends [10][24] Market Conditions and Cyclicality - The company acknowledges the cyclicality of the housing market and has strategies in place to navigate market fluctuations [17][18] - Weyerhaeuser believes that cyclical businesses can be profitable with a well-aligned strategy, focusing on cost and operational excellence [17][18] Long-term Targets and Achievements - Weyerhaeuser has successfully met or exceeded aggressive targets set during previous investor days, including acquiring $1.2 billion of high-quality timberlands [20][21] - The climate solutions business achieved its goal of $100 million in Adjusted EBITDA by 2025, demonstrating strong growth potential [21] Growth Initiatives - The growth initiatives include ongoing acquisitions and dispositions, increasing harvest volume, and new demand and product uplift [50][54] - The company is exploring opportunities in the southern export market, capitalizing on declining global timber supplies and increasing demand from countries like India [58][60] Wood Products Business - Weyerhaeuser has one of the largest and most cost-competitive wood products businesses in North America, with a strong portfolio in engineered wood products, lumber, and MDF [62][63] - The company is focused on leveraging its integrated platform to drive growth and improve margins across its wood products business [63] Conclusion - Weyerhaeuser is well-positioned for future growth with a strong operational foundation, innovative strategies, and a commitment to sustainability [34][61] - The company aims to deliver significant value to shareholders through its growth initiatives and disciplined capital allocation approach [26][30]

Core Insights - The lumber market is experiencing a downturn, with futures prices trending lower and a potential for increased price variance due to U.S.-Canada trade relations and interest rate fluctuations [1][4]. Price Trends - Active-month lumber futures were trading at $595 per 1,000 board feet on August 19, 2025, but fell to around $530 by late November, marking a 10.7% decrease [2][4]. - January 2026 lumber futures have fluctuated between $527.50 and $699.00 per 1,000 board feet throughout 2025, with a notable high of $698.50 on August 1 [4]. - The trading range for lumber prices in 2025 has been narrow compared to previous years, with 2021 and 2022 highs significantly higher than the 2025 low [5]. ETF Performance - The iShares Global Timber & Forestry ETF (WOOD) settled at $74.52 per share on August 19, 2025, but declined to $67.74 by late November, representing a 9.1% drop [6][7]. - The CUT ETF has also seen a decline since August 19, indicating a broader trend in the timber and forestry sector [2].