LOUISIANA-PACIFIC CORP

21.29 -0.01 (-0.05%) Sell

Are you evaluating investing in LPX? Avoid as it ranked among the worst performers

13 min read

LOUISIANA-PACIFIC CORP ranked among the worst performers on Tuesday. It lost -0.05% to close at 21.29. On a day when the overall market breadth was 35%, it closed higher than 18% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing LPX]

LPX showed a strong down trend over the last 3 months. During this period LPX lost -30.61% and saw a maximum drawdown of -31.72%. There were 2 short signals during this period that returned a cumulative of +25.3% to investors.

Trend

LPX has been underperforming the SP500 index in recent time, after having outperformed till 17 Apr, 2018. Over the last 2 years 11 months and 7 days, LPX underperformed the SP500 index on 49% days. Which indicates that on days LPX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

LPX returned losses on 65% days in the last three months. During this time, it delivered on average -0.56% per day. It delivered it's best daily return of +6.48%, during this period, on Thursday, 1 Nov, 2018. There was initially a bearish trend during this period which started on 17 Sep, 2018 and went on till 28 Sep, 2018. The trend delivered -15.32% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +9.7% to investors.

LPX had 5 profitable and 7 loss making months over the last year. During the last year, LPX underperformed SP500 index on monthly return basis. LPX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -18.1% compared to -7.28% returned by SP500 index in Oct 2018. LPX and SP500 index, both had periods of 2 consecutive losing months. It is interesting to note that both LPX and SP500 index significantly outperform during months when quarterly/annual results are announced.

"There is no one-decision stocks

LPX is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in LPX's volatility from 27 Sep, 2018 to 6 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that LPX has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

LPX has more chance of extreme outcomes than the SP500 index. Therefore, LPX must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than LPX.

Based on your interest in LPX you may find it interesting to know that LULU is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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