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Louisiana-Pacific (LPX) Stock Slides as Market Rises: Facts to Know Before You Trade

The most recent trading session ended with Louisiana-Pacific (LPX) standing at $74.57, reflecting a -0.33% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.02% gain on the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 2.03%.

The home construction supplier's shares have seen a decrease of 10.83% over the last month, not keeping up with the Construction sector's loss of 6.08% and the S&P 500's loss of 3.15%.

The investment community will be closely monitoring the performance of Louisiana-Pacific in its forthcoming earnings report. The company is scheduled to release its earnings on May 8, 2024. The company's upcoming EPS is projected at $1.13, signifying a 232.35% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $676.9 million, showing a 15.91% escalation compared to the year-ago quarter.

LPX's full-year Zacks Consensus Estimates are calling for earnings of $4.47 per share and revenue of $2.79 billion. These results would represent year-over-year changes of +38.82% and +8.08%, respectively.

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Any recent changes to analyst estimates for Louisiana-Pacific should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 15.9% higher. Louisiana-Pacific currently has a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Louisiana-Pacific is currently exchanging hands at a Forward P/E ratio of 16.76. For comparison, its industry has an average Forward P/E of 24.34, which means Louisiana-Pacific is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LPX in the coming trading sessions, be sure to utilize Zacks.com.

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Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report

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