Weyerhaeuser’s Performance: Trends and Analyst Insights
Weyerhaeuser Company (WY), with a market capitalization of $21.1 billion, stands as one of the foremost U.S. forest product companies. Its operations are primarily based in Southern California, Nevada, Washington, Texas, Maryland, and Virginia. Established in 1900, Weyerhaeuser serves a wide range of clients across the United States and internationally.
As a large-cap stock, Weyerhaeuser qualifies as a significant player in the market. The company is among the biggest lumber suppliers in the U.S., benefiting from approximately 11 million acres of timberlands in the United States and Canada.
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Despite its strong position, the company has seen a decline of 19.6% from its 52-week high of $36.27, which occurred on March 28 of last year. However, WY has experienced a 6.1% increase over the past three months, outperforming the iShares Global Timber & Forestry ETF (WOOD), which has shown only a slight increase in the same period.
Over the past six months, WY has dropped 12.2% and 17.9% over the last year. In comparison, WOOD decreased by 8.8% in the last six months and 9.1% over the previous 52 weeks.
Since early March, Weyerhaeuser has been trading below its 200-day moving average and fell below its 50-day moving average after the last trading session. This trend indicates a recent downturn.
In its latest Q4 earnings report on January 30, WY shares rose by 1.4%. The company reported net sales of $1.7 billion, with earnings per share (EPS) of $0.11, which surpassed Wall Street estimates by 57.1%. This positive performance was buoyed by the strength of its Natural Climate Solutions business.
Looking ahead, Weyerhaeuser anticipates that earnings and adjusted EBITDA for the first quarter of fiscal 2025 will be $20 million higher than Q4 results.
In a similar vein, competitor Rayonier Inc. (RYN) has experienced a comparable decline, with its shares dropping 13.5% in the past six months and 16.8% over the last year.
Analysts maintain a positive outlook for Weyerhaeuser. The stock holds a consensus rating of “Strong Buy” from 11 analysts, with a mean price target of $36, suggesting an upside of 23.4% from current market levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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