Louisiana-Pacific Corp. (LPX): Today's Featured Materials & Construction Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Louisiana-Pacific ( LPX) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 1%. By the end of trading, Louisiana-Pacific fell 35 cents (-2.2%) to $15.70 on heavy volume. Throughout the day, 6.7 million shares of Louisiana-Pacific exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $15.07-$16.50 after having opened the day at $16.01 as compared to the previous trading day's close of $16.05. Other companies within the Materials & Construction industry that declined today were: India Globalization Capital ( IGC), down 5.3%, Comstock ( CHCI), down 4.4%, TRC Companies ( TRR), down 3.8%, and Sharps Compliance Corporation ( SMED), down 3.3%.
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Louisiana-Pacific Corporation, together with its subsidiaries, engages in manufacturing and distributing building products for new home construction, repair and remodeling, manufactured housing, and light industrial and commercial construction. Louisiana-Pacific has a market cap of $2.19 billion and is part of the industrial goods sector. The company has a P/E ratio of -13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 97.1% year to date as of the close of trading on Monday. Currently there are two analysts that rate Louisiana-Pacific a buy, five analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Louisiana-Pacific as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share.

On the positive front, Pike Electric Corporation ( PIKE), up 14.5%, US Concrete ( USCR), up 8.8%, Tri-Tech ( TRIT), up 8.7%, and Patrick Industries ( PATK), up 6.9%, were all gainers within the materials & construction industry with Fluor Corporation ( FLR) being today's featured materials & construction industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).

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