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 0.3%. By the end of trading, Louisiana-Pacific fell 39 cents (-1.8%) to $21.41 on light volume. Throughout the day, 1.4 million shares of Louisiana-Pacific exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in price between $21.33-$21.93 after having opened the day at $21.91 as compared to the previous trading day's close of $21.80. Other companies within the Materials & Construction industry that declined today were: Tri-Tech ( TRIT), down 6.9%, NCI Building Systems ( NCS), down 6.3%, Integrated Electrical Services ( IESC), down 5.1%, and India Globalization Capital ( IGC), down 5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $3.01 billion and is part of the industrial goods sector. The company has a P/E ratio of 98.2, above the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Louisiana-Pacific a buy, five analysts rate it a sell, and four 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 impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including premium valuation and poor profit margins.

On the positive front, MagneGas Corporation ( MNGA), up 9.4%, Xinyuan Real Estate ( XIN), up 8.3%, Real Goods Solar ( RSOL), up 5%, and Comfort Systems USA ( FIX), up 4.7%, were all gainers within the materials & construction industry with Lennar Corporation ( LEN) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Three Big Factors That Rocked the Stock Market Tuesday

Three Big Factors That Rocked the Stock Market Tuesday

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Dow Tumbles Over 400 Points; S&P 500 and Nasdaq Also Finish Lower

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Caterpillar Bulldozes Industrial Sector With Bad News on Earnings Call

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Jim Cramer: If You're Afraid of the 10-Year Yield, Go to Cash

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug

Eli Lilly CEO Expresses Confidence in New Rheumatoid Arthritis Drug