For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Louisiana-Pacific (LPX) ten years ago? It may not have been easy to hold on to LPX for all that time, but if you did, how much would your investment be worth today?
Louisiana-Pacific's Business In-Depth
With that in mind, let's take a look at Louisiana-Pacific's main business drivers.
Louisiana-Pacific Corporation or LP is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction.
Currently, the company operates 22 plants strategically located across the United States, Canada, Chile and Brazil through foreign subsidiaries. It also operates facilities through a joint venture. The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures.
The company has three reportable segments — Siding (contributing 51.5% of 2023 net sales), Oriented Strand Board or OSB (39.8%) and LP South America (7.9%). Notably, revenues from Other sources contributed 0.9% to its net sales.
Siding segment consists of LP SmartSide trim and siding, as well as LP Outdoor Building Solutions innovative products for premium outdoor buildings.
OSB segment manufactures and distributes OSB structural panel products including LP OSB, LP TechShield radiant barrier, LP TopNotch sub-flooring, LP Legacy super tough, moisture-resistant sub-flooring, LP WeatherLogic air & water barrier and LP FlameBlock fire-rated sheathing.
South America segment manufactures and distributes OSB and siding products in South America and certain export markets. South America segment manufactures and distributes OSB and siding products in South America and certain export markets.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Louisiana-Pacific ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2015 would be worth $7,358.20, or a gain of 635.82%, as of January 16, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 198.59% and the price of gold increased 110.97% over the same time frame in comparison.
Going forward, analysts are expecting more upside for LPX.
Shares of Louisiana-Pacific have outperformed its industry in the past six months. The company is benefiting from strategic business investments and cost-reduction initiatives. Also, its focus on Siding and OSB business bode well. In the third quarter of 2024, the Siding segment generated record net sales and adjusted EBITDA backed by the solid execution of its strategy to drive growth, margin, specialization and efficiency. OSB also reported better-than-expected adjusted EBITDA, thanks to operational efficiency and cost control measures. Backed by strength in Siding, LP increased its 2024 guidance. However, lumber market swings, high operational costs and macro risks are notable headwinds to the company’s prospects. Earnings estimates for 2025 have remained unchanged over the past 60 days, limiting the upside potential of the stock.
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Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
