Louisiana-Pacific Corporation : The stock is approaching a major resistance level

11/24/2020 | 08:17am EST

Jordan Dufee

long trade Target price hit

Entry price : 35.76$ | Target : 40$ | Stop-loss : 31.9$ | Potential : 11.86%

Louisiana-Pacific Corporation is close to a major resistance level, whereby the breach of this level could be considered as a buy signal. This reflects our preferred scenario in light of the stock's current technical chart pattern. Investors have an opportunity to buy the stock and target the $ 40.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
• The company has solid fundamentals for a short-term investment strategy.

Strengths

• The company is in a robust financial situation considering its net cash and margin position.
• The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
• Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
• Over the past year, analysts have regularly revised upwards their sales forecast for the company.
• For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
• For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
• Within the weekly time frame the stock shows a bullish technical configuration above the support level at 21.9 USD

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