Louisiana-Pacific (LPX) Exceeds Market Returns: Some Facts to Consider

Louisiana-Pacific (LPX) ended the recent trading session at $77.09, demonstrating a +1.78% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.47%.

The home construction supplier's stock has dropped by 19.1% in the past month, falling short of the Construction sector's loss of 10.84% and the S&P 500's loss of 1.88%.

Market participants will be closely following the financial results of Louisiana-Pacific in its upcoming release. The company is expected to report EPS of $0.05, down 96.06% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $570.9 million, showing a 21.15% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.79 per share and a revenue of $2.86 billion, demonstrating changes of +5.28% and +5.39%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Louisiana-Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 12.54% lower. Currently, Louisiana-Pacific is carrying a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Louisiana-Pacific has a Forward P/E ratio of 27.15 right now. For comparison, its industry has an average Forward P/E of 25.14, which means Louisiana-Pacific is trading at a premium to the group.

The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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