) scaled a new 52-week high of $32.40 during its trading session on
Jun 24. The new apex represents a slight increase over the previous
high of $32.00 reached on Oct 25, 2013.
Weyerhaeuser Company closed the session at $32.17, reflecting a
year-to-date return of 3.4%. The trading volume for the session was
15.6 million shares. Earnings estimate revisions for 2014 and 2015
and an expected earnings growth rate of 5.0% for the next five
years indicate further upward potential for this company.
Over the past five years, Weyerhaeuser has recorded an outstanding
earnings growth rate of 97.4%. In the quarters ahead, the company
is anticipated to benefit from a recovering U.S. housing market.
Housing starts are expected to increase in 2014 and 2015. Export
business is likely to flourish, Japan being the prime export
destination for the company's timberland business.
Also, the slated spin-off of WRECO, its homebuilding and real
estate company to
TRI Pointe Homes, Inc.
) by June end has kept the momentum high for Weyerhaeuser. The
transaction, while being tax-free for the company's participating
shareholders, will lower the company's shares outstanding on
completion. Since May 22, the company's share price has grown by
For second-quarter 2014, Weyerhaeuser predicts sequentially higher
earnings for the Wood Products, Cellulose Fibers and Real Estate
segments, while anticipating comparable earnings for the Timberland
segment. Further, the company plans to reduce its overhead costs in
Estimate Revisions Show Potency
In the last 60 days, the Zacks Consensus Estimate for Weyerhaeuser
has gone up 5.5% to $1.34 for 2014 and 2.5% to $1.64 for 2015.
These estimates reflect year-over-year growth rates of 17.2% for
2014 and 22.8% for 2015.
Weyerhaeuser currently has an $18.8 billion market capitalization
and carries a Zacks Rank #3 (Hold). Other stocks worth considering
in the building products industry include
United Rentals, Inc.
), each holding a Zacks Rank #2 (Buy).
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WEYERHAEUSER CO (WY): Free Stock Analysis
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