Will West Fraser Timber Co. Ltd. (WFG) Gain on Rising Earnings Estimates?
West Fraser Timber Co. Ltd. (WFG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
West Fraser Timber Co. Ltd. (WFG) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For West Fraser Timber Co. Ltd. There has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $4.78 per share for the current quarter, which represents a year-over-year change of +26.46%.
The Zacks Consensus Estimate for West Fraser Timber Co. Ltd. has increased 38.15% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $28.26 per share, representing a year-over-year change of +208.52%.
The revisions trend for the current year also appears quite promising for West Fraser Timber Co. Ltd. with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 5.09%.
Favorable Zacks Rank
The promising estimate revisions have helped West Fraser Timber Co. Ltd. earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
West Fraser Timber Co. Ltd. shares have added 8.3% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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West Fraser Timber Co. Ltd. (WFG): Free Stock Analysis Report
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