UFP Industries (UFPI) Laps the Stock Market: Here's Why
In the latest market close, UFP Industries (UFPI) reached $118.82, with a +1.72% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.89% for the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.
Shares of the wood and materials provider for the construction industry have appreciated by 6.13% over the course of the past month, underperforming the Construction sector's gain of 7.65% and outperforming the S&P 500's gain of 3.56%.
Analysts and investors alike will be keeping a close eye on the performance of UFP Industries in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.61, marking a 18.69% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.69 billion, reflecting a 7.07% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.39 per share and revenue of $7.15 billion. These totals would mark changes of -8.43% and -0.93%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for UFP Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.21% decrease. As of now, UFP Industries holds a Zacks Rank of #3 (Hold).
Digging into valuation, UFP Industries currently has a Forward P/E ratio of 15.8. For comparison, its industry has an average Forward P/E of 26.95, which means UFP Industries is trading at a discount to the group.
The Building Products - Wood industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.
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UFP Industries, Inc. (UFPI) : Free Stock Analysis Report
