LPX vs. TREX: Which Stock Is the Better Value Option?

Core Insights - Investors are evaluating Louisiana-Pacific (LPX) and Trex (TREX) as potential undervalued stocks in the Building Products - Wood sector [1] Valuation Metrics - Both LPX and TREX currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - LPX has a forward P/E ratio of 18.91, while TREX has a higher forward P/E of 29.99 [5] - The PEG ratio for LPX is 1.23, suggesting a more favorable valuation relative to its expected earnings growth compared to TREX's PEG ratio of 2.56 [5] - LPX's P/B ratio stands at 4.27, significantly lower than TREX's P/B ratio of 8, indicating a better market value relative to book value for LPX [6] Value Grades - Based on the valuation metrics, LPX has earned a Value grade of B, while TREX has received a Value grade of D, suggesting that LPX is currently the superior value option [6][7]