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 0.7%. By the end of trading, Louisiana-Pacific fell $0.41 (-2.4%) to $16.72 on average volume. Throughout the day, 3,150,154 shares of Louisiana-Pacific exchanged hands as compared to its average daily volume of 2,894,900 shares. The stock ranged in price between $16.66-$17.13 after having opened the day at $17.07 as compared to the previous trading day's close of $17.13. Other companies within the Industrial Goods sector that declined today were: NF Energy Saving ( NFEC), down 10.1%, Capstone Turbine Corporation ( CPST), down 9.4%, China Advanced Construction Materials Group ( CADC), down 9.3% and Gafisa ( GFA), down 8.8%.
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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 $2.2 billion and is part of the wholesale industry. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are down 11.3% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Louisiana-Pacific a buy, 3 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Louisiana-Pacific as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, LGL Group ( LGL), down 16.5%, Breeze-Eastern Corporation ( BZC), down 8.9%, Hydrogenics Corporation ( HYGS), down 7.4% and Bonso Electronics International ( BNSO), down 6.4% , were all gainers within the industrial goods sector with Stratasys ( SSYS) being today's featured industrial goods sector leader.

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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