Not only are consensus EPS estimates strong for fiscal year 2013 at $1.23 per share, but the growth is expected to continue into next year as evidenced by fiscal 2014 estimates of $1.49 per share.
Given that Bloomberg expects Weyerhaeuser to report revenue for fiscal 2014 of $8.9 billion, this stock can yet be undervalued if the company is able to meet this revenue target along with EPS estimates of $1.49 per share.
Weyerhaeuser's average P/E over the past couple of years has been 33. With fiscal 2014 EPS projections of $1.49, this stock can possibly reach a fair value of $50, which would make the stock a strong buy today.
Bottom LineWeyerhaeuser (the surname of co-founder Frederick) has a solid market position when it comes to timberland and wood products. The question, though, is what phase of the recovery the market is in. Given Weyerhaeuser's strong first-quarter performance and solid second-quarter guidance, I won't dispute that this century-old company is growing and should continue to be a solid play in new home construction/rebuilds.
On the strength of a sustained housing recovery, including 2013 housing starts, which is at an estimated 990,000, there's still plenty of justification for long-term bullishness. In the near-term, however, the stock might need a breather, and a slight pullback, possibly to $27 per share, would be a great point of entry.At the time of publication, the author held no position in any of the stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.