Louisiana-Pacific (LPX) Laps the Stock Market: Here's Why

Louisiana-Pacific (LPX) closed at $89.84 in the latest trading session, marking a +1.54% move from the prior day. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%. Shares of the home construction supplier have appreciated by 0.75% over the course of the past month, underperforming the Construction sector's gain of 6.97%, and the S&P 500's gain of 4.61%.Investors will be eagerly watching for the performance of Louisiana-Pacific in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2025. The company is predicted to post an EPS of $0.97, indicating a 53.59% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $716.7 million, reflecting a 11.95% fall from the equivalent quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and a revenue of $2.77 billion, representing changes of -35.54% and -5.82%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for Louisiana-Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.41% lower within the past month. At present, Louisiana-Pacific boasts a Zacks Rank of #5 (Strong Sell). With respect to valuation, Louisiana-Pacific is currently being traded at a Forward P/E ratio of 23.33. This represents a discount compared to its industry average Forward P/E of 30.63. Meanwhile, LPX's PEG ratio is currently 1.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Building Products - Wood industry stood at 2.86 at the close of the market yesterday. The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 8% of all 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. You can find more information on all of these metrics, and much more, on Zacks.com. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Louisiana-Pacific Corporation (LPX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks