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West Fraser Timber (WFG-T)
144 watching
TSE:WFG
105.00
1.16
(1.09%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Dec 2, 2022, 9:00 pm
0
DON'T BUY
What's wrong with this? US housing has ground to a halt. Lumber prices are way off. China has been shut down, so lumber demand collapsed short-term. He expects interest rates to continue to rise and pressure housing. China is reopening now though. WFG is a highly cyclical and unpredictable stock. Earning can soar and plummet. Buy cyclicals when nobody wants them, and sell when markets peak. Wait until you see where earnings go. Lumber has traditionally had low PE's because it's very hard to forecast earnings.
west coast forestry
$96.680
Unknown
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
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
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)
west coast forestry
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
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
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.
west coast forestry
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
West Fraser Timber(WFG-T) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 2
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 3
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, 3 stock analysts published opinions about WFG-T. 2 analysts recommended to BUY the stock. 1 analyst 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?
3 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 2022-12-02, West Fraser Timber (WFG-T) stock closed at a price of $105.
