Louisiana-Pacific (LPX) is a Top-Ranked Momentum Stock: Should You Buy?

Group 1: Zacks Style Scores Overview - Zacks Style Scores is a unique set of guidelines that rates stocks based on value, growth, and momentum characteristics, serving as complementary indicators for the Zacks Rank [2][3] - Each stock is assigned a rating of A, B, C, D, or F, with A being the best score indicating a higher chance of outperforming the market [3] - The Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles [3][4][5][6] Group 2: Value Score - The Value Style Score focuses on identifying stocks that are trading under their true value by analyzing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Group 3: Growth Score - The Growth Style Score emphasizes a company's financial strength and future outlook, taking into account projected and historical earnings, sales, and cash flow [4] Group 4: Momentum Score - The Momentum Style Score helps investors capitalize on upward or downward trends in stock prices or earnings outlook, using factors like one-week price change and monthly percentage change in earnings estimates [5] Group 5: VGM Score - The VGM Score rates stocks based on a combination of value, growth, and momentum, making it a strong indicator to use alongside the Zacks Rank [6] Group 6: Zacks Rank Performance - The Zacks Rank model, which utilizes earnings estimate revisions, has shown that 1 (Strong Buy) stocks have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, including more than 200 with a Strong Buy rank and 600 with a Buy rank [9] Group 7: Stock Example - Louisiana-Pacific Corporation - Louisiana-Pacific Corporation (LPX) is a leading manufacturer of sustainable engineered wood building materials and has a Zacks Rank of 2 (Buy) with a VGM Score of B [11] - LPX has a Momentum Style Score of B, with shares increasing by 9.4% over the past four weeks, and two analysts have revised their earnings estimates upwards for fiscal 2024 [12] - The Zacks Consensus Estimate for LPX has increased by $0.10 to$5.64 per share, with an average earnings surprise of 30.7% [12]