West Fraser Timber Co. Ltd. (WFG) Gains as the Market Goes Down: What You Need to Know

IDuring the last trading session, West Fraser Timber Co. Ltd. (WFG) closed at $74.04, marking a +1.52% move from the previous day. The stock topped the S&P 500’s 0.27% daily loss. Meanwhile, the Dow Jones gained 0.4% and the tech-heavy Nasdaq lost 0.18%.

Prior to today’s session, the company’s shares were down 23.26% over the past month. This was lower than the basic materials sector’s 5.7% gain and the S&P 500’s 7.36% gain during this period.

Investors are hoping for the strength of West Fraser Timber Co. Ltd. ahead of its next earnings release, which is expected on April 28, 2022. In this report, analysts expect West Fraser Timber Co. Ltd. shows a profit of $7.84. per share. This would mark a year-over-year growth of 12.64%.

For the full year, our Zacks consensus estimates call for earnings of $17.94 per share and revenue of $7.53 billion, which would represent swings of -33.63% and -28, 43%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for West Fraser Timber Co. Ltd. These revisions help show the ever-changing nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has remained stagnant. West Fraser Timber Co. Ltd. Currently holds a Zacks rank of #3 (Hold).

Digging into the valuation, West Fraser Timber Co. Ltd. currently has a forward P/E ratio of 4.07. This valuation marks a discount compared to the average Forward P/E of its sector of 22.2.

The Agriculture – Products industry is part of the Basic Materials sector. This group has a Zacks industry ranking of 54, which places it in the top 22% of over 250 industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to track all of these stock movement metrics, and more, at Zacks.com.

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West Fraser Timber Co. Ltd. (WFG): 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.