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Louisiana-Pacific Corporation (LPX)

LPX stock forecast: buy or sell

Close on Sep 25th, 2020
$29.78 0.00%
3 months performance
0.23%
Published: September 27th, 2020 - 22:15

LPX stock outlook

  • Louisiana-Pacific stock just changed 0.1% to close at $29.78 on the stock market on Friday.
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $12.81. This rally marked a 132.47% gain
  • Louisiana-Pacific Corporation, together with its subsidiaries, manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets.

Please read:
The viewpoints given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the particular positions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for learning reasons only

LPX stock charts

Should I buy Louisiana-Pacific stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is LPX stock a buy?

In the current situation of Louisiana-Pacific there is not any eligible buy setup. This doesn't mean LPX will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Louisiana-Pacific stock?

How to know when is it time to sell Louisiana-Pacific stock?. Trading strategies allow us to avoid impulsive decisions based on our sentiments or the buzz that surrounds the market. When selling, as well as buying, our strategies are very easy to use but are only applicable for selling shares in your porfolio, not for shorting LPX stock

A golden rule is that you should not keep an open trade that shows a higher than expected losses by the time of purchase. The moment to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell Louisiana-Pacific stock?

In the current situation of Louisiana-Pacific there is not any eligible sell setup, so Louisiana-Pacific stock holders with operations in profit can keep their positions

Price lost SMA50 level

Since Louisiana-Pacific crossed up the 50-d simple moving average last April price gained a 51.4%. Nonetheless that positive trend may be over, or be showing signs of weakening, since the price fell below that moving average level on September 18. For mid-term investors who profited from the stock during the period the price was above the average, this signal should be a wake-up call and a reason to sell the stock and cash in on their profits

Analysts' recommendations to buy or sell Louisiana-Pacific stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one rating was published for Louisiana-Pacific

Louisiana-Pacific ratings

Brokerage firmRating
Sep 11th, 2020
Bank of America Strong buy

Technical analysis

Since last March, Louisiana-Pacific has been printing an uptrend that by now marked an amazing 132.47%. The price line shows higher highs and higher lows, and along the way gave some entry points for those who wanted to invest. Latest pullback was in mid-June, when price bounced at $21.74. Like in all uptrends, price needs to rest and currently price is moving in a range between $34.18 and $21.74

SMAs overview

Moving averages are tools for investors to measure market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. Learn more about Moving Averages from sources like Wikipedia and Investopedia

LPX SMAs chart

Supports and resistances

Technical analysts use support and resistance levels to spot price points on a chart that tend to behave as barriers, preventing the price of an asset to move up or down. Supports are levels where the price tends to stop as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue falling until meeting another support level. On the contrary, resistances are where the price may find a curb as it rises. In the same manner, the price is more likely to "bounce off" at this level, and if it finally breaks this level, it will rise easily until it meets the next resistance

The current resistance levels are:

  • R1: $30.80 (3.43% above)
  • R2: $31.99 (7.42% above)
  • R3: $33.94 (13.97% above)
  • The current supports are:

  • S1: $29.71 (-0.24% below)
  • S2: $29.61 (-0.57% below)
  • S3: $29.60 (-0.6% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. The Bollinger Bands are lines that fluctuate around a centralmoving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price broke down the lower band on Wednesday, the price has bounced off by 1.19%. The price is trading near to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a buy point, as price can move in these levels for many days and weeks

    LPX RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price fluctuations to detect when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 in late August after just crossing to the overbough zone for a single day (weak signal). The RSI value on Friday was 40.8. Since that level was lost, Louisiana-Pacific shares sank a 11.16%

    LPX RSI chart

    Earnings and financials

    Louisiana-Pacific Corporation (LPX) reported EPS for the fiscal Q2 that significantly beat Wall St. expectations. Quarterly EPS was $0.43 per share instead of $0.16. This Q2 report means an earnings surprise of 168.75%. Estimated turnover was $527.9 million but Louisiana-Pacific slightly uplifted by 3.81%, posting $548.0 million.

    Compared to the same quarter last year, EPS was $0.11, so reported EPS is a increase of 290.91%. Revenue sliced a -6.8% on an annualized basis in the Q2, from $588.0M to $548.0M last quarter.

    LPX will host the earnings call on early next November. Wall Street forecasts an EPS of $1.07, compared to previous quarter that was $0.43. Earnings reporting day has an additional risk for investors as the results posted can soar and sink the stock price with lower volume and not honouring your buy/stop-loss orders. You can probably uncover more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.lpcorp.com.

    LPX revenues and profits chart