Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Best Lumber Stocks To Invest In

In this article, we will discuss the 10 best lumber stocks to invest in. If you want to explore similar stocks, you can also take a look at 5 Best Lumber Stocks To Invest In.

Home prices are going through the roof in 2022 amid surging inflation, higher interest rates, and rising mortgage rates. Expensive borrowing has been hurting homebuyers and causing consumer demand weakness within the housing sector. With mortgage rates approaching 7%, the prices of lumber are falling and may be at or approaching a bottom. As of October 7, lumber is trading at $445 per 1000 board feet and has declined about 60% year to date.

Housing Starts Rose Unexpectedly in August

On September 20, Reuters reported that new residential home construction in the U.S. rose in August. Housing starts, a measure of new residential construction, grew by 12.2% month-over-month to 1.58 million units in August, well above market consensus which sat at 1.44 million units. Starts for multi-family housing projects surged 28.6% month-over-month in August, driven by strong demand for rental apartments due to higher mortgages that are taking away the purchasing power of potential homebuyers. Single-family housing starts rose in August to 935,000 units and recorded a 3.4% month-over-month increase.

Surging demand for multi-family housing projects is spurring activity in the volatile commodities market. Lumber futures have gained roughly 5% over the past five days as of October 7. Investors that are looking to capitalize on the current housing situation can position their portfolios for a rebound. Lumber prices have close ties to the housing market and though the housing sector is being pressured by higher interest rates and mortgage rates, the rise in multi-family starts can send lumber prices higher. Investors can benefit while lumber still comes cheap by buying some of the top lumber stocks into weakness right now. Some of the best lumber stocks with positive market sentiment include UFP Industries, Inc. (NASDAQ:UFPI), Boise Cascade Company (NYSE:BCC), and Weyerhaeuser Company (NYSE:WY).

Our Methodology

To determine the best lumber stocks to buy now, we reviewed the lumber industry and identified major players. We narrowed down our selection to profitable companies with strong balance sheets and solid free cash flows. We gave weight to analyst and investor sentiment and included stocks with positive market sentiment. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, and salient features that make it rank among the best lumber stocks to buy now. We have arranged these stocks according to their popularity among elite hedge funds.

Best Lumber Stocks To Invest In

10. Stella-Jones Inc. (OTC:STLJF)

Number of Hedge Fund Holders: N/A

Stella-Jones Inc. (OTC:STLJF) is a leading North American producer of wood products. On September 15, Stella-Jones Inc. (OTC:STLJF) announced that it will be acquiring Texas Electric’s wood utility pole manufacturing business for $28 million and also $4 million worth of inventories. The transaction is expected to close by the end of 2022. The stock is one of the best lumber stocks to invest in right now.

On August 10, Stella-Jones Inc. (OTC:STLJF) announced earnings for the second quarter of 2022. The company reported earnings per share of $1.51 and generated a revenue of $907 million, beating Wall Street estimates by $238.39 million. As of October 7, the stock is trading at a PE multiple of 13x and is offering a forward dividend yield of 2.03%. The company has free cash flows of $235 million and is one of the best cash-rich lumber stocks to buy now.

Wall Street analysts are bullish on Stella-Jones Inc. (OTC:STLJF). On August 11, TD Securities analyst Michael Tupholme raised his price target on Stella-Jones Inc. (OTC:STLJF) to C$48 from C$45 and maintained a Buy rating on the shares. On September 16, Scotiabank analyst Mark Neville raised his price target on Stella-Jones Inc. (OTC:STLJF) to C$51 from C$50 and reiterated a buy-side Outperform rating on the shares.

Some of the best undervalued lumber stocks to buy now include Stella-Jones Inc. (OTC:STLJF), UFP Industries, Inc. (NASDAQ:UFPI), Boise Cascade Company (NYSE:BCC), and Weyerhaeuser Company (NYSE:WY).

9. Interfor Corporation (OTC:IFSPF)

Number of Hedge Fund Holders: N/A

Interfor Corporation (OTC:IFSPF) produces and sells wood products in Canada, the United States, Japan, China, Taiwan, and international markets. The company offers lumber, logs, wood chips, and other residuals. On October 4, Scotiabank analyst Benoit Laprade revised his price target on Interfor Corporation (OTC:IFSPF) to C$42 from C$43 and reiterated a buy-side Outperform rating on the shares.

On October 3, Interfor Corporation (OTC:IFSPF) announced that it will be acquiring 100% of the equity interests in Chaleur Forest Products for C$325 million. Chaleur Forest Products operates two sawmill operations that have a combined annual lumber production capacity of 350 million board feet. The acquisition is expected to close in the fourth quarter of 2022.

Interfor Corporation (OTC:IFSPF) is cash rich and profitable. The company has trailing twelve-month cash flows of $734.6 million and an operating margin of 28.4%. Over the past three months, the stock has received 3 Buy ratings and 1 Hold rating from Wall Street analysts and has a consensus Strong Buy rating. Interfor Corporation (OTC:IFSPF) is one of the best lumber stocks to buy now.

8. West Fraser Timber Co. Ltd. (NYSE:WFG)

Number of Hedge Fund Holders: 14

West Fraser Timber Co. Ltd. (NYSE:WFG) is a diversified wood products company that manufactures and distributes lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals. At the end of the second quarter of 2022, 14 hedge funds held stakes in West Fraser Timber Co. Ltd. (NYSE:WFG). The total value of these stakes amounted to $230 million.

This July, TD Securities analyst Sean Steuart raised his price target on West Fraser Timber Co. Ltd. (NYSE:WFG) to $120 from $105 and reiterated a Buy rating on the shares. Over the past three months, West Fraser Timber Co. Ltd. (NYSE:WFG) has received 3 Buy ratings from Wall Street analysts and has a consensus Strong Buy rating. The stock has an average price target of $102, which represents an upside of 42%. West Fraser Timber Co. Ltd. (NYSE:WFG) is one of the best lumber stocks to buy now.

On September 7, West Fraser Timber Co. Ltd. (NYSE:WFG) declared a quarterly cash dividend of $0.30 per share of the company’s common stock. The dividend was payable on October 7 to investors of record at the close of business on September 22. As of October 7, the stock is offering a forward dividend yield of 1.67% and has free cash flows of $2.14 billion.

As of June 30, Waratah Capital Advisors is the most prominent shareholder in West Fraser Timber Co. Ltd. (NYSE:WFG) and owns roughly 0.73 million shares of the company. The fund’s stakes are valued at $56.6 million and the investment covers 1.24% of its 13F portfolio.

7. Resolute Forest Products Inc (NYSE:RFP)

Number of Hedge Fund Holders: 16

Resolute Forest Products Inc. (NYSE:RFP) operates in the forest products industry in the United States, Canada, Mexico, and international markets. The company has four business divisions: Market Pulp, Tissue, Wood Products, and Paper. As of October 7, Resolute Forest Products Inc. (NYSE:RFP) has gained 46.5% over the past twelve months and is one of the best lumber stocks to buy now.

Resolute Forest Products Inc. (NYSE:RFP) is trading at a bargain and has solid free cash flows. As of October 7, Resolute Forest Products Inc. (NYSE:RFP) has a trailing twelve-month PE ratio of 3.78 and has free cash flows of $499 million.

This August, TD Securities analyst Sean Steuart revised his rating on Resolute Forest Products Inc (NYSE:RFP) to Tender from Hold and reiterated his $23 price target on the shares. The stock has a consensus Buy rating among analysts.

At the end of the second quarter of 2022, 16 hedge funds held stakes in Resolute Forest Products Inc (NYSE:RFP). The total value of these stakes amounted to $478.78 million. As of June 30, Fairfax Financial Holdings owns more than 30.5 million shares of Resolute Forest Products Inc (NYSE:RFP) and is the top shareholder in the company. The fund’s stakes are valued at $389.79 million and the investment covers 13.73% of its investment portfolio.

6. Rayonier Inc. (NYSE:RYN)

Number of Hedge Fund Holders: 17

Rayonier Inc. (NYSE:RYN) is a specialized REIT that manages assets that are rich in lumber and timber. On August 3, Rayonier Inc. (NYSE:RYN) announced market-beating earnings for the second quarter of 2022. The company reported earnings per share of $0.22 and outperformed estimates by $0.06. The company generated a revenue of $246.3 million and beat Wall Street consensus by $30.79 million.

Rayonier Inc. (NYSE:RYN) pays dividends and is cash-rich and profitable. As of October 7, the stock is offering a forward dividend yield of 3.62% and the company has free cash flows of $104.48 million and a trailing twelve-month operating margin of 20.8%. Rayonier Inc. (NYSE:RYN) is one of the best lumber stocks to buy now.

At the end of the second quarter of 2022, 17 hedge funds were long Rayonier Inc. (NYSE:RYN) and held stakes worth $250.28 million in the company. As of June 30, Impax Asset Management is the leading shareholder in Rayonier Inc. (NYSE:RYN) and has stakes worth $172.9 million in the company.

For investors that are on the lookout for lumber stocks, some of the best pure-play lumber stocks to invest in right now include UFP Industries, Inc. (NASDAQ:UFPI), Boise Cascade Company (NYSE:BCC), and Weyerhaeuser Company (NYSE:WY).

Click to continue reading and see 5 Best Lumber Stocks To Invest In.

Suggested articles:

Disclosure: None. 10 Best Lumber Stocks To Invest In is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…