Valued at a market cap of $22 billion, Seattle, Washington-based Weyerhaeuser Company (WY) is one of the world's largest private owners of timberlands, managing approximately 11 million acres in the U.S. and additional lands in Canada. Operating as a real estate investment trust (REIT), the company sustainably manages its forests and is a leading manufacturer of wood products in North America.
Shares of the timber and paper products company have underperformed the broader market over the past 52 weeks. WY has declined 7.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.7%. However, shares of WY are up 7.6% on a YTD basis, outperforming SPX’s 3.3% gain.
Zooming in further, WY’s underperformance becomes more evident when compared to the Real Estate Select Sector SPDR Fund’s (XLRE) 10.3% gain over the past 52 weeks.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $0.11 on Jan. 30, shares of WY fell 1.1% the next day. This drop was primarily due to net sales of $1.7 billion missing expectations and representing a 3.7% year-over-year decrease. Investors were also concerned about declines in both earnings and net sales compared to the previous year, attributed to lower fee harvest volumes in the West and a shift from export to domestic sales. Additionally, the company's adjusted EBITDA fell 8.4% to $294 million.
For the current fiscal year, ending in December 2025, analysts expect WY’s EPS to grow 50.9% year-over-year to $0.80. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion..
Among the 11 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” and two “Holds.”
This configuration is more bullish than three months ago, with five “Strong Buy” ratings on the stock.
On Feb. 5, Raymond James analyst Buck Horne raised the price target for Weyerhaeuser to $35 while maintaining an “Outperform" rating.
As of writing, WY is trading below the mean price target of $35.70. The Street-high price target of $39 implies a potential upside of 28.9% from the current price.
