Weyerhaeuser Company (WY), with a market cap of $21.1 billion, is one of the leading U.S. forest product companies with operations primarily concentrated in Southern California, Nevada, Washington, Texas, Maryland and Virginia. Founded in 1900, the company caters to a diverse clientele spread over the United States and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," WY fits this bill perfectly. As one of the biggest lumber suppliers in the U.S., the company benefits from approximately 11 million acres of timberlands in the United States and Canada.
However, the company has fallen 19.6% from its 52-week high of $36.27, recorded on Mar. 28 last year. WY stock has surged 6.1% over the past three months, outperforming the iShares Global Timber & Forestry ETF’s (WOOD) marginal rise during the same time frame.
WY has declined 12.2% over the past six months and 17.9% over the past 52 weeks. In contrast, WOOD has fallen 8.8% over the past six months and 9.1% over the past 52 weeks.
WY has been trading below its 200-day moving average since early March and under its 50-day moving average since the last trading session, indicating a recent downtrend.
WY shares increased 1.4% following its Q4 earnings release on Jan. 30. The company reported net sales of $1.7 billion. The company’s EPS amounted to $0.11, surpassing the Wall Street estimates by 57.1%, thanks to the solid performance of its Natural Climate Solutions business
Additionally, WY expects earnings and adjusted EBITDA for the fiscal 2025 first quartet to be $20 million higher than the fourth quarter.
Its rival, Rayonier Inc. (RYN), has also followed the same decline over the past year, with its shares dropping 13.5% over the past six months and 16.8% over the past 52 weeks.
Analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from 11 analysts in coverage. Its mean price target of $36 represents an upside of 23.4% from the current market prices.
