Shares of Louisiana-Pacific Corporation LPXhave gained 3.4% so far this year compared with the industry’s gain of 1.7%.
Again, Louisiana-Pacific’s trailing 12-month return on equity (ROE) supports growth potential. ROE in the trailing 12 months is 25.4%, higher than the industry average of 20.4%. This indicates the company’s efficient usage of shareholders’ funds.
Recently, the company reported first-quarter 2018 results, wherein earnings improved considerably by 65.8% from the year-ago quarter’s tally and sales increased 13% year over year. Adjusted EBITDA from continuing operations was $159 million in the quarter, up 39.5% from $114 million in the prior-year quarter.
Moreover, earnings estimates for the company have exhibited an uptrend, reflecting analysts’ optimism in the stock’s prospects. The Zacks Consensus Estimate for the company’s current-year earnings rose 7.4% while that of next year increased 4.2%, over the past 30 days.
This positive trend signifies bullish analyst sentiments. The company’s Zacks Rank #2 (Buy) indicates robust fundamentals and expectations of outperformance in the near term.