Buy, Sell or Hold: West Fraser Timber (WFG-T) — Stock Predictions at Stockchase

TSE:WFG

97.63

3.93 (4.19%) 1d

Showing 1 to 15 of 134 entries

BUY

Still extremely cheap, despite the run up last year. Lumber prices are back above $1000 again. Huge cashflow at these prices. Concerns US housing market will slow, but there just isn't enough supply, so demand will persist. No debt, good price momentum and valuation. Can buy here.

west coast forestry

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PAST TOP PICK

(A Top Pick Mar 17/22, Down 11.2%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with WFG has triggered its stop at $108. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 4%, when combined with the previous buy recommendation.

west coast forestry

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TOP PICK

Stockchase Research Editor: Michael O’Reilly We once again reiterate this producer of lumber, pulp and paper with 60 facilities in Canada, the US, United Kingdom and Europe as a TOP PICK. Annual EPS growth has exceeded 50% for the past three years. It trades under 10x earnings and only at 1.7x book. It pays a small dividend, backed by a payout ratio under 10% of cashflow. We recommend maintaining the stop at $108, looking to achieve $149 -- upside potential over 22%. Yield 1.06% (Analysts’ price target is $149.12)

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TOP PICK

Stockchase Research Editor: Michael O'Reilly We again reiterate this producer of lumber, pulp and paper with 60 facilities in Canada, the US, United Kingdom and Europe as a TOP PICK. Recently reported earnings again beat analyst expectations and the latest consensus calls for EPS growth of 15% over the same quarter last year, when it reports mid-month. It trades well under its peers, who are valued at 24x earnings. It pays a small dividend, backed by a payout ratio under 10% of cashflow. We recommend trailing up the stop (from $95) to $108, looking to achieve $149 -- upside potential over 18%. Yield 0.84% (Analysts’ price target is $148.32)

west coast forestry

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TOP PICK

Stockchase Research Editor: Michael O'Reilly WFG (with sales up over 85% on the year and having 60 facilities in Canada, the US, United Kingdom and Europe) is reiterated as a TOP PICK. Recently reported earnings showed YTD EPS over $24 per share, compared to under $4.50 a year ago at this time. It trades well under its peers, who are valued at 9x earnings. It pays a small dividend, backed by a payout ratio of under 10% of cashflow. We recommend trailing up the stop (from $60) to $95, looking to achieve $147 -- upside potential over 32%. Yield 0.9% (Analysts’ price target is $146.40)

west coast forestry

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TOP PICK

One of the biggest players in lumber. Paid some extra dividends from the lumber price strength. The biggest and probably safest way to play lumber. Prices are now normalizing. Social media mentions at 1050% over the last 24 hours.

west coast forestry

BUY

The lumber stocks had an incredible run with lumber prices running up. One of the biggest player in lumber. It paid some extra dividends. Lumber prices are now normalizing. Biggest and probably the safest.

west coast forestry

HOLD

Lumber stocks have dropped only 10-15% in the last little bit. Longer term, should benefit from increasing US housing demand. US represents about 65% of its revenue. Concern is tariffs. Valuation is a large discount to historical averages. Hold, and watch your stop losses.

west coast forestry

WATCH

Commodity prices have been so strong and they generated a lot of cash flow. But lumber prices have come off. There could be a leg higher on these names, but you have to see what happens to the commodity price. Watch for another up-leg.

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TOP PICK

Stockchase Research Editor: Michael O'Reilly With lumber prices up 300% and demand strong for renovations, it is challenging to find an entry into the space at good value. This is the sweet spot for WFG, having 60 facilities in Canada, the US, United Kingdom and Europe. Recently reported sales were up 81%. It trades at 8x earnings, compared to peers over 17x. It pays a small dividend, backed by a payout ratio of under 10% of cashflow. We would buy this with a stop loss at $60, looking to achieve $136 -- upside potential over 38%. Yield 0.82% (Analysts’ price target is $135.70)

west coast forestry

DON'T BUY

Timber has been a great place to be this year. Not sure why it's dropped today. Well run, but an expensive multiple at 3.7x book value. How long will the lumber cycle last? Their cycles tend to be longer than other commodities.

west coast forestry

TOP PICK

Lumber prices have soared YOY over 300%. Free cash flow yield at 14.4% is very high. The latest report said that earnings were up 50% and earnings are forecast to grow 35% to $16 ROE in 2021 at a PE of 6.4x. Analyst estimates have jumped 81%. (Analysts’ price target is $112.68)

west coast forestry

HOLD

The giant after their acquisition. Scores on valuation and price momentum. More expensive than Interfor. Brookfield, a major owner, has been selling their stake. Hold for now.

west coast forestry

BUY

An exciting time in home builders. Under made homes for several years in the US. A powerful rally. Likes that WFG is now a combined entity. WEF is a small cap and is more whippy. Both are good.

west coast forestry

COMMENT

Will the Buy American campaign affect WFT? He expects their coming report to be strong, given the housing boom, including renovations. WFT recently bought Norbord, which signals that they expects this housing boom to last years. All timber stocks are lumpy with returns happening in pockets (either really good returns or bad returns). So, consider lumber a trade and not a buy-and-hold. Buy America: Companies like WFT are changing geographies according to asset ownership from entirely Canada to abroad, including the U.S. Their ticker will change to WFG on the TSX. They likely have some American assets. Potential tariffs on software lumber will continue to be a risk.

west coast forestry

Showing 1 to 15 of 134 entries

West Fraser Timber(WFG-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 4

Stockchase rating for West Fraser Timber is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

West Fraser Timber(WFG-T) Frequently Asked Questions

What is West Fraser Timber stock symbol?

West Fraser Timber is a Canadian stock, trading under the symbol WFG-T on the Toronto Stock Exchange (WFG-CT). It is usually referred to as TSX:WFG or WFG-T

Is West Fraser Timber a buy or a sell?

In the last year, 4 stock analysts published opinions about WFG-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for West Fraser Timber.

Is West Fraser Timber a good investment or a top pick?

West Fraser Timber was recommended as a Top Pick by on . Read the latest stock experts ratings for West Fraser Timber.

Why is West Fraser Timber stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is West Fraser Timber worth watching?

4 stock analysts on Stockchase covered West Fraser Timber In the last year. It is a trending stock that is worth watching.

What is West Fraser Timber stock price?

On 2022-06-24, West Fraser Timber (WFG-T) stock closed at a price of $97.63.

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