Louisiana-Pacific (LPX) Ascends But Remains Behind Market: Some Facts to Note

Group 1: Stock Performance - Louisiana-Pacific (LPX) closed at $86.38, with a +0.86% change from the previous session, underperforming the S&P 500's daily gain of 1.81% [1] - Over the last month, LPX shares decreased by 4.17%, which is better than the Construction sector's loss of 7.59% and the S&P 500's loss of 6.14% [1] Group 2: Upcoming Earnings - Louisiana-Pacific is set to announce its earnings on May 6, 2025, with projected earnings of$ 1.12 per share, reflecting a year-over-year decline of 26.8% [2] - The consensus estimate for revenue is $692.85 million, indicating a 4.3% decrease compared to the same quarter of the previous year [2] Group 3: Annual Forecast - For the entire year, Zacks Consensus Estimates forecast earnings of$ 5.12 per share and revenue of $2.95 billion, representing changes of -12.93% and +0.39%, respectively, compared to the previous year [3] Group 4: Analyst Estimates - Recent modifications to analyst estimates for Louisiana-Pacific are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which considers these estimate changes, has a track record of outperforming, with stocks rated 1 producing an average annual return of +25% since 1988 [5][6] Group 5: Valuation Metrics - Louisiana-Pacific is currently trading at a Forward P/E ratio of 16.74, which is a discount compared to the industry average of 16.93 [7] - The company has a PEG ratio of 1.09, significantly lower than the Building Products - Wood industry's average PEG ratio of 2.05 [7] Group 6: Industry Ranking - The Building Products - Wood industry, part of the Construction sector, has a Zacks Industry Rank of 204, placing it within the bottom 18% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]