The technical chart pattern of UFP Industries, Inc. shares shows signs of a medium term reversal, which speaks in favor of opening new long positions.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a poor ESG score according to Refinitiv, which ranks companies by sector.
Strengths
● The company's attractive earnings multiples are brought to light by a P/E ratio at 9.18 for the current year.
● The stock, which is currently worth 2022 to 0.52 times its sales, is clearly overvalued in comparison with peers.
● The company has a low valuation given the cash flows generated by its activity.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company's earnings growth outlook lacks momentum and is a weakness.
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company is not the most generous with respect to shareholders' compensation.
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UFP Industries, Inc. is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia that designs, manufactures, and supplies products made from wood, composites, and other materials. The Company's segments include Retail, Packaging and Construction. Its Retail Solutions segment is comprised of business units, such as ProWood, Sunbelt, Deckorators and UFP-Edge. Retail Solutions segment is focused on distinct product offerings, which are grouped by brands and business units. Packaging segment is comprised of business units, such as Structural Packaging, PalletOne, and Protective Packaging Solutions. Construction segment is comprised of business units, such as Factory-Built Housing, Site-Built Construction, Commercial Construction, and Concrete Forming. Its ProWood business units manufactures and sells treated lumber products, including decking, fencing, and lattice, as well as decorative and functional lawn and garden products to building products retailers.