Louisiana-Pacific Corp. (LPX): Today's Featured Industrial Goods 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 Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.8%. By the end of trading, Louisiana-Pacific fell 55 cents (-3.5%) to $15.06 on average volume. Throughout the day, 5.3 million shares of Louisiana-Pacific exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in price between $14.72-$15.58 after having opened the day at $15.55 as compared to the previous trading day's close of $15.61. Other companies within the Industrial Goods sector that declined today were: Tri-Tech ( TRIT), down 39.4%, OSI Systems ( OSIS), down 28.1%, Real Goods Solar ( RSOL), down 10.6%, and Servotronics ( SVT), down 10.1%.
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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 $2.23 billion and is part of the materials & construction industry. The company has a P/E ratio of -29.3, below the S&P 500 P/E ratio of 17.7. Shares are up 99.4% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Louisiana-Pacific a buy, four analysts rate it a sell, and six 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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