Louisiana-Pacific Corporation (LPX) shares are trading at lower $34.96 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $37.50.
To add more color to this target, the company’s high over the last year is $35.92 and the low is $12.97. Over the last 52 weeks, LPX is up 17.51% while the S&P 500 is up 15.47%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LPX reported a profit of $292.0 million. Louisiana-Pacific Corporation also saw revenues increase to $795.0 million. In addition, LPX has free cash flow of $285.0 million as of 09-2020. The company’s EBITDA came in at $270.0 million which compares well with its peers.
LPX booked profit margins of 7.80%, its Return on Equity (ROE) is 18.70%, and its Return on Assets is 9.90%. All told, it is clear that, LPX needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LPX has a short ratio of 1.27 and outstanding shares of 112.00M.
LPX has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.11 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.71. Louisiana-Pacific Corporation LPX also noted assets of $1.97 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LPX has historically followed its peers on positive news.
All told, Louisiana-Pacific Corporation LPX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LPX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Louisiana-Pacific Corporation LPX is now commanding a market cap of 3.91B and a float of 108.57M. LPX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LPX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in LPX, either long or short, and we have not been compensated for this article.