) scaled a new 52-week high of $34.51 during its trading session on
Aug 25. The new apex represents a slight increase over the previous
high of $34.42 reached on Aug 21, 2014.
Weyerhaeuser Company closed the session at $34.46, reflecting a
year-to-date return of 10.8%. The trading volume for the session
was roughly 1.9 million shares. Earnings estimate revisions for
2014 and an expected earnings growth rate of 5% for the next five
years, indicate further upward potential for this company.
Weyerhaeuser's share price has risen by 10.3% since Aug 1, clearly
reflecting investors' confidence in the recovering U.S. housing
market. Housing starts are expected to increase in 2014 and 2015,
while export businesses are likely to flourish in the quarters
Also, the company's second-quarter earnings of 40 cents per share
were up 21.2% year over year and above the Zacks Consensus Estimate
of $0.34. Revenues grew 4.8% on the back of healthy performance in
the Timberland, Wood Products and Cellulose Fibers segments.
In Jul 2014, Weyerhaeuser completed the divestiture of its real
estate business, WRECO, to TRI Pointe Homes, Inc. (
). The divested assets contributed $317 million in revenues, while
50 million shares have been retired in connection with the
transaction. Going forward, management intends to capitalize on its
core forest products-based businesses.
In addition, Weyerhaeuser recently received its board of directors'
approval for an increase of 32% or 7 cents in the quarterly
dividend rate and a $700 million share buyback program. The twin
news indicates the healthy cash position of the company and its
commitment towards enhancing shareholders' return.
Estimate Revisions Show Potency
In the last 30 days, the Zacks Consensus Estimate for Weyerhaeuser
has climbed 2.3% to $1.36 for 2014, reflecting year-over-year
growth of 18.9% for 2014.
In addition, the company has an
of +1.47% for 2014, indicating the extent by which the Most
Accurate Estimate of $1.38 has surpassed the Zacks Consensus
Estimate of $1.36.
With a market capitalization of $18.2 billion, Weyerhaeuser
currently carries a Zacks Rank #3 (Hold). Other stocks worth
considering in the building products industry include Boise Cascade
) and The Home Depot, Inc. (
), each holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
HOME DEPOT (HD): Free Stock Analysis Report
WEYERHAEUSER CO (WY): Free Stock Analysis
BOISE CASCADE (BCC): Free Stock Analysis Report
TRI POINTE HOME (TPH): Free Stock Analysis
To read this article on Zacks.com click here.