West Fraser Timber Co. Ltd. (WFG) Gains As Market Dips: What You Should Know
In the latest trading session, West Fraser Timber Co. Ltd. (WFG) closed at $75.25, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.
Coming into today, shares of the company had lost 18.71% in the past month. In that same time, the Basic Materials sector lost 15.74%, while the S&P 500 lost 7.99%.
Investors will be hoping for strength from West Fraser Timber Co. Ltd. as it approaches its next earnings release. In that report, analysts expect West Fraser Timber Co. Ltd. to post earnings of $8.17 per share. This would mark a year-over-year decline of 33.69%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.11 per share and revenue of $8.45 billion. These totals would mark changes of +4% and -19.67%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for West Fraser Timber Co. Ltd.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. West Fraser Timber Co. Ltd. is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that West Fraser Timber Co. Ltd. has a Forward P/E ratio of 2.67 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.96.
The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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