Louisiana-Pacific (LPX) Beats Stock Market Upswing: What Investors Need to Know

In the latest trading session, Louisiana-Pacific (LPX) closed at $73.85, marking a +1.34% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.91%. Meanwhile, the Dow experienced a rise of 0.85%, and the technology-dominated Nasdaq saw an increase of 1.51%.

Coming into today, shares of the home construction supplier had lost 11.45% in the past month. In that same time, the Construction sector lost 6.97%, while the S&P 500 lost 4.2%.

Analysts and investors alike will be keeping a close eye on the performance of Louisiana-Pacific in its upcoming earnings disclosure. The company's earnings report is set to go public on May 8, 2024. The company is predicted to post an EPS of $1.13, indicating a 232.35% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $676.9 million, up 15.91% from the year-ago period.

LPX's full-year Zacks Consensus Estimates are calling for earnings of $4.89 per share and revenue of $2.79 billion. These results would represent year-over-year changes of +51.86% and +8.08%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Louisiana-Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 26.8% upward. As of now, Louisiana-Pacific holds a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Louisiana-Pacific is currently exchanging hands at a Forward P/E ratio of 14.92. This represents a discount compared to its industry's average Forward P/E of 22.74.

The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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