Here's Why Louisiana-Pacific (LPX) Fell More Than Broader Market

Louisiana-Pacific (LPX) closed the latest trading day at $93.40, indicating a -0.73% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.33%.Coming into today, shares of the home construction supplier had lost 7.3% in the past month. In that same time, the Construction sector lost 5.2%, while the S&P 500 lost 7.48%.Investors will be eagerly watching for the performance of Louisiana-Pacific in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.12, signifying a 26.8% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $692.85 million, down 4.3% from the year-ago period.LPX's full-year Zacks Consensus Estimates are calling for earnings of $5.12 per share and revenue of $2.95 billion. These results would represent year-over-year changes of -12.93% and +0.39%, respectively.It is also important to note the recent changes to analyst estimates for Louisiana-Pacific. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.7% decrease. Louisiana-Pacific presently features a Zacks Rank of #4 (Sell).From a valuation perspective, Louisiana-Pacific is currently exchanging hands at a Forward P/E ratio of 18.4. For comparison, its industry has an average Forward P/E of 20.59, which means Louisiana-Pacific is trading at a discount to the group.Also, we should mention that LPX has a PEG ratio of 1.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LPX's industry had an average PEG ratio of 2.14 as of yesterday's close.The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 185, placing it within the bottom 27% 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.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