With the housing market rising and home furnishing sales strong, lumber companies are scoring big gains. Top ranked West Fraser Timber stock has performed well, although it’s down a bit from a recent all-time high. On Thursday, the IBD SmartSelect Composite Rating for West Fraser Timber (WFG) climbed to a near-best 97, up from 92 the day before.
The new score indicates West Fraser Timber stock is now outperforming 97% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
In Q1, the company reported 1,833% EPS growth. Revenue grew 163%, up from 50% growth in the prior quarter. The company has now posted accelerating growth in each of the last four reports. Last quarter, the Vancouver, B.C.-based company reported $6.96 EPS on $2.34 billion revenue.
West Fraser Timber stock earns the No. 1 rank among its peers in the Building-Wood Products industry group. Louisiana Pacific (LPX) and UFP Industries (UFPI) are also among the group’s highest-rated stocks.
One weak spot is West Fraser Timbers stock’s 74 EPS Rating, which tracks quarterly and annual earnings-per-share growth. That’s primarily due to weak profits in past year. Over the last four quarters its EPS has risen 552%, then more than 1,000% the next two periods. Look for that rating to improve to 80 or better to show it’s in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
West Fraser Timber stock hit an all-time high 91.53 on May 10 before consolidating. It dropped to a 67.08 low on June 18 before rising again. On Thursday afternoon it was trading at 74.18, just below its 50-day line. See if the stock goes on to form a new base and offer a fresh buying opportunity.
YOU MIGHT ALSO LIKE: