LOUISIANA-PACIFIC CO

LPX
Real-time Estimate Quote. Real-time Estimate  - 12/01 11:20:04 am
69.33USD +6.09%

Louisiana-Pacific Corporation : Close to an important technical resistance levels

11/24/2021 | 02:43am
Jordan Dufee
Senior Analyst

Strategy published on : 11/24/2021 | 02:43

long trade
Live

Entry price : 70.14$
Target : 99$
Stop-loss : 56$
Potential : 41.15%

Louisiana-Pacific Corporation shares are trading close to a resistance zone which currently limits any upside potential. We expect that this level will be broken due to the stock's technical chart pattern.
Investors have an opportunity to buy the stock and target the $ 99.

Summary

● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

● The company presents an interesting fundamental situation from a short-term investment perspective.

● The company has a poor ESG score according to Refinitiv, which ranks companies by sector.


Strengths

● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.

● The group's high margin levels account for strong profits.

● The company is in a robust financial situation considering its net cash and margin position.

● Its low valuation, with P/E ratio at 5.28 and 9.73 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Given the positive cash flows generated by its business, the company's valuation level is an asset.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● For the past twelve months, EPS forecast has been revised upwards.

● Over the past twelve months, analysts' opinions have been strongly revised upwards.

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.


Weaknesses

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.

● The company appears highly valued given the size of its balance sheet.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.

© MarketScreener.com 2021
Copier lien
All news about LOUISIANA-PACIFIC CORPORATION
5h ago
5h ago
11/16
11/16
11/09