Headquartered in Seattle, Washington, Weyerhaeuser Company (WY) is a leading timberland and forest products company with a market cap of $22.71 billion. Weyerhaeuser is known for its sustainable forestry practices and innovative wood products. The company manages millions of acres of timberland across North America, providing essential materials for construction and manufacturing.
Shares of WY have significantly underperformed the broader market over the past year. The stock has declined 6.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. In 2024 alone, WY stock is down 10.6%, compared to SPX's 11.5% gains on a YTD basis.
Narrowing the focus, WY’s underperformance looks less pronounced when measured against the iShares Global Timber & Forestry ETF (WOOD). The exchange-traded fund has gained 3.5% over this period. Moreover, the stock's YTD loss is higher than the exchange-traded fund's 5.3% decline over the same time frame.
On Jul. 25, WY reported its Q2 results. The company’s revenue was $1.94 billion, missing the Street estimates of $2.01 billion. The company’s profit stood at $173 million. Also, its EPS came in at $0.21, missing the Street forecasts of $0.22. However, the stock gained 4.3% in the session following the day the results were released.
For the current fiscal year, ending in December, analysts expect WY’s EPS to decline 34.3% to $0.67 on a diluted basis. The company's earnings surprise history is mixed. It beat or matched the consensus estimate in three of the last four quarters while missing on another occasion.
Among the 10 analysts covering WY’s stock, the consensus rating is a “Moderated Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
On Jul. 29, Ketan Mamtora from BMO Capital maintained a “Hold” rating on Weyerhaeuser with a price target of $38, implying a potential upside of 22.2% from current levels.
The mean price target of $35.89 represents a 15.4% premium to WY’s current price levels.
On the date of publication, Rashmi Kumari 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.
