Louisiana-Pacific Corp. (LPX): Today's Featured Wholesale 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 Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Louisiana-Pacific fell $0.72 (-4.5%) to $15.21 on heavy volume. Throughout the day, 6,178,227 shares of Louisiana-Pacific exchanged hands as compared to its average daily volume of 2,989,600 shares. The stock ranged in price between $15.20-$16.16 after having opened the day at $15.98 as compared to the previous trading day's close of $15.93. Other companies within the Wholesale industry that declined today were: Hudson Technology ( HDSN), down 4.1%, Watsco ( WSO.B), down 2.7%, VOXX International ( VOXX), down 2.5% and Bluelinx Holdings ( BXC), down 2.2%.
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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 $2.3 billion and is part of the services sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are down 17.5% 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, Rada Electronics Industries ( RADA), down 9.0%, Universal Power Group ( UPG), down 7.6%, Crystal Rock Holdings ( CRVP), down 5.8% and Shengkai Innovations ( VALV), down 5.4%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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