In this article, we will take a look at the 12 best land and timber stocks to buy according to analysts.
The Land and Timber Sector: Current Trends and Future Outlook
The land and timber sector plays a vital role in both economic and environmental contexts. This sector not only provides essential materials like wood and paper but also significantly contributes to job creation and economic stability. The sector creates direct jobs, along with additional indirect and induced employment opportunities across various sectors such as logging, transportation, and manufacturing.
According to the American Forest and Paper Association, the forest products industry in the United States employs about 925,000 people directly. Additionally, it supports over 2 million jobs indirectly. This industry ranks among the top ten manufacturing employers in 43 states and contributes roughly 5% to the overall manufacturing GDP of the country.
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This sector encompasses activities related to forestry, logging, timberland management, and the production of wood products. It includes various processes such as harvesting trees, sawing logs into timber, and manufacturing wood-based products like furniture and paper. Timber companies play a vital role in managing forests sustainably. There is a growing shift towards more sustainable forestry practices and increased investment in timberland as an asset class. This trend is driven by a growing awareness of the environmental benefits of forestry. As consumers become more environmentally conscious, there is an increasing preference for products sourced from responsibly managed forests.
Another significant trend is the expansion of timber’s role in construction. With a focus on reducing carbon footprints, many builders are turning to timber as a renewable alternative to traditional materials like steel and concrete. Timber’s versatility allows it to be used in various applications, from residential homes to commercial buildings. Additionally, advancements in technology are streamlining operations within the industry, making logging and processing more efficient while minimizing environmental impact.
The J.P. Morgan Asset Management Timberland Outlook for 2024 indicates that cash yields and value growth for timberland assets are expected to grow, driven by housing and lumber demand. This trend is expected to continue into 2025 as interest rates gradually decline, making homes more affordable. Despite a slowdown in global saw timber demand in 2023 due to weaker economic activity in China and rising US interest rates, housing starts in the US remained robust. The ongoing shortage of homes, combined with low existing home sales, has increased the need for new construction.
Looking ahead, J.P. Morgan Asset Management anticipates strong cash yields from timberland assets, with prices and yields expected to rise further in 2025 and beyond. As the demand for sustainable investments grows, timberland is seen as a valuable asset class that can provide both economic benefits and contribute to climate solutions.
With this background in mind, let’s take a look at the 12 best land and timber stocks to buy according to analysts.
Aerial view of a timberland with lush green trees and sunlight filtering through the branches.
Methodology
To compile our list of the 12 best land and timber stocks to invest in according to analysts, we reviewed financial media reports and consulted various online resources including timber ETFs. We focused on the top land and timber stocks that analysts believe have the most potential for growth. We ranked the 12 best land and timber stocks to invest in based on their average price target upside potential according to analysts as of December 27, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
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12 Best Land and Timber Stocks to Buy According to Analysts
12. Louisiana-Pacific Corporation (NYSE:LPX)
Average Price Target Upside Potential According to Analysts: 11.67%
Number of Hedge Fund Holders: 39
Louisiana-Pacific Corporation (NYSE:LPX) is a manufacturer of engineered wood products, serving builders, remodelers, and homeowners worldwide. With 22 plants across the US, Canada, Chile, and Brazil, the company offers a diverse range of products, including siding solutions, structural components, and oriented strand board (OSB). Louisiana-Pacific Corporation (NYSE:LPX) owns timber and timberlands. Most of its manufacturing in the northern regions utilizes trembling aspen, a fast-growing hardwood known for its ability to regenerate quickly. The company harvests areas where trembling aspen is found with other evergreen species in Canada. LPX ranks among the best land and timber stocks to buy according to analysts.
For Q3 2024, Louisiana-Pacific Corporation (NYSE:LPX) reported a slight decline in net sales of 1% compared to the previous year due to changing market conditions. However, siding revenue experienced an increase of $76 million, representing a 22% growth driven by a 15% rise in volume and a 6% increase in prices. In the face of market pressures, the company is committed to adapting and demonstrating resilience.
Louisiana-Pacific Corporation (NYSE:LPX) generated $153 million in EBITDA and $184 million in operating cash flow during the quarter. For the third quarter, the company strategically invested $44 million in capital expenditures while returning $91 million to shareholders through dividends and share repurchases. As of September 30, 2024, Louisiana-Pacific Corporation (NYSE:LPX) maintained about $900 million in liquidity and a strong balance sheet. The company’s focus on returning value to shareholders while carefully investing in growth initiatives positions LPX as an attractive investment opportunity in the land and timber sector.
11. Smurfit Westrock Plc (NYSE:SW)
Average Price Target Upside Potential According to Analysts: 12.65%
Number of Hedge Fund Holders: 29
Smurfit Westrock Plc (NYSE:SW) is a packaging solutions company that specializes in corrugated and paper-based packaging. With operations in 40 countries, the company has over 500 converting operations and 62 paper mills, offering a wide variety of innovative packaging solutions. The company also manages more than 300,000 acres of forested land. Smurfit Westrock Plc (NYSE:SW) is one of the best land stocks to buy.
In its first financial report as Smurfit Westrock Plc (NYSE:SW), covering the third quarter ended September 30, 2024, the company reported net sales of approximately $7.67 billion. This marks a substantial increase from $2.91 billion in the same quarter of 2023, largely due to the acquisition of WestRock, which contributed nearly $4.69 billion to sales. The demand for corrugated products also positively impacted volume.
Despite the impressive revenue growth, Smurfit Westrock Plc (NYSE:SW) faced a net loss of $150 million for the third quarter of 2024. This loss was primarily due to transaction-related expenses and purchase accounting adjustments totaling around $500 million. However, Smurfit Westrock Plc (NYSE:SW) achieved an Adjusted EBITDA of $1.26 billion with an Adjusted EBITDA margin of 16.5%, reflecting strong operational performance.
The integration of Smurfit Kappa and WestRock is progressing well, with Smurfit Westrock Plc (NYSE:SW) targeting synergies of at least $400 million through improved operational efficiency and plant-level autonomy. With its robust portfolio and strategic growth initiatives underway, Smurfit Westrock Plc (NYSE:SW) presents a compelling investment opportunity.
10. Simpson Manufacturing Co. Inc. (NYSE:SSD)
Average Price Target Upside Potential According to Analysts: 15.62%
Number of Hedge Fund Holders: 22
Simpson Manufacturing Co. Inc. (NYSE:SSD) designs, engineers, and manufactures wood construction products. The company’s extensive product range includes connectors, truss plates, fastening systems, fasteners, and shear walls. Simpson Manufacturing Co. Inc. (NYSE:SSD) works closely with manufacturers of engineered wood and composite laminated timber. It also manufactures concrete construction products. SSD is one of the best timber stocks to buy.
For Q3 2024, Simpson Manufacturing Co. Inc. (NYSE:SSD) reported net sales of $587.2 million, showing a slight increase year-over-year despite ongoing challenges in the housing markets in both the US and Europe. The company achieved a notable 500 basis point volume growth in North America by outperforming US housing starts over the past year. To improve profitability amid market pressures, Simpson Manufacturing Co. Inc. (NYSE:SSD) is focused on aligning its costs with current conditions.
The company is investing in its facilities to boost production capabilities, with an expansion of its Columbus, Ohio facility set to be operational by early 2025 and a new fastener facility in Gallatin, Tennessee expected to be completed by late 2025. Additionally, Simpson Manufacturing Co. Inc. (NYSE:SSD) acquired QuickFrames USA during the third quarter of 2024. This acquisition strengthens its market position and expands its product offerings in engineered structural roof frames across North America.
With strategic capital allocations and acquisitions, Simpson Manufacturing Co. Inc. (NYSE:SSD) is well-positioned for future growth. Its proactive approach to adapting to market challenges while enhancing operational capacity makes it an attractive stock.
9. UFP Industries Inc. (NASDAQ:UFPI)
Average Price Target Upside Potential According to Analysts: 17.15%
Number of Hedge Fund Holders: 22
UFP Industries Inc. (NASDAQ:UFPI), formerly known as Universal Forest Products, is a leading manufacturer and distributor of products for construction, packaging, and industrial applications. The company operates over 200 facilities worldwide and is a key supplier of lumber to the manufactured housing industry. As a leading manufacturer and distributor of wood products, the company is committed to protecting forests while sourcing lumber from around the globe.
For Q3 2024, UFP Industries Inc. (NASDAQ:UFPI) reported net sales of $1.65 billion, a 10% decrease year-over-year. This decline was primarily due to a 3% drop in organic unit sales and a 7% reduction in selling prices, largely driven by a significant 21% decrease in the price of Southern Yellow Pine, which accounts for about two-thirds of the company’s lumber purchases. The challenging market conditions have put pressure on both revenue and profit margins.
To navigate these challenges, the company is implementing strategic initiatives aimed at improving efficiency and reducing costs. UFP Industries Inc. (NASDAQ:UFPI) plans to consolidate facilities to enhance capacity utilization and is exploring options for certain business units that do not align with its long-term goals. Through these measures, UFP Industries Inc. (NASDAQ:UFPI) expects to achieve annual cost reductions exceeding $70 million.
Looking ahead, UFP Industries Inc. (NASDAQ:UFPI) is focused on growth and plans to invest approximately $1 billion over the next five years in strategic acquisitions and organic growth opportunities. This includes investments of $300 million towards automation, technology upgrades, and capacity expansion in 2024. With its proactive management strategies, commitment to sustainability, and strong investment plans, UFP Industries Inc. (NASDAQ:UFPI) presents an attractive investment opportunity. The combination of cost-cutting measures and significant capital investment positions the company for future growth despite current market challenges.
8. Sylvamo Corporation (NYSE:SLVM)
Average Price Target Upside Potential According to Analysts: 17.37%
Number of Hedge Fund Holders: 18
Sylvamo Corporation (NYSE:SLVM) is a significant player in the paper industry, producing paper for education, communication, and entertainment. The company operates mills in Europe, Latin America, and North America, and manages over 294,000 acres of forest in Brazil. Sylvamo is dedicated to sourcing all its fiber from sustainably managed forests. SLVM is one of the best land and timber stocks to buy according to analysts.
In the third quarter of 2024, Sylvamo Corporation (NYSE:SLVM) reported a net income of $95 million, or $2.27 per diluted share, an increase from $83 million in the second quarter of 2024. The company achieved an adjusted EBITDA of $193 million, reflecting a 20% margin, up from 18% in the second quarter. This strong performance was driven by higher shipment volumes in North America.
The company is focused on optimizing its operations. Sylvamo Corporation (NYSE:SLVM) is terminating a supply agreement with International Paper for uncoated freesheet, bristols and specialty papers, effective December 31, 2024. This move is part of a broader strategy to streamline operations and enhance efficiency.
Sylvamo Corporation (NYSE:SLVM) has also made significant strides in returning value to shareholders. In 2024, the corporation has repurchased $30 million of its shares and plans to return at least 40% of its free cash flow to shareholders through dividends and buybacks. The board declared a quarterly dividend of $0.45 per share in the fourth quarter, which was paid in October. Year-to-date, Sylvamo Corporation (NYSE:SLVM) has distributed $62 million through four quarterly dividends. With its commitment to sustainability, strong financial results, and strategic initiatives aimed at enhancing operational efficiency and shareholder value, Sylvamo Corporation (NYSE:SLVM) is well-positioned for future growth.
7. Rayonier Inc. (NYSE:RYN)
Average Price Target Upside Potential According to Analysts: 21.86%
Number of Hedge Fund Holders: 19
Rayonier Inc. (NYSE:RYN) is a prominent timberland real estate investment trust (REIT) that specializes in managing forests and land resources. The company manages approximately 2.7 million acres of timberland across the US South, US Pacific Northwest, and New Zealand. The company has positioned itself in some of the most productive softwood timber markets. Rayonier Inc. (NYSE:RYN) ranks among the best land stocks to invest in.
In the third quarter of 2024, the company reported a net income of $28.8 million and revenues of $195 million. This reflects an increase in net income from $19.2 million in the same quarter last year, although revenues decreased from $201.6 million. Rayonier Inc. (NYSE:RYN) achieved an adjusted EBITDA of $71.8 million. Adjusted EBITDA was down 9% compared to Q3 2023, mainly due to a lower contribution from the company’s New Zealand Timber segment. Despite macroeconomic challenges that continue to adversely impact the company’s timber businesses, Rayonier Inc. (NYSE:RYN) delivered solid operational results.
Additionally, Rayonier Inc. (NYSE:RYN) is actively pursuing a $1 billion disposition initiative aimed at enhancing shareholder value and reducing leverage in a challenging economic environment. In November 2024, the company announced completed and pending timberland dispositions totaling approximately 200,000 acres for about $495 million. These sales include properties in Southeast Oklahoma and Washington’s Olympic Peninsula, demonstrating Rayonier Inc.’s (NYSE:RYN) strategy to divest less strategic assets while focusing on markets with stronger cash flow potential.
The company has successfully completed or announced pending timberland dispositions totaling $737 million since launching its initiative to enhance shareholder value in November 2023. This proactive approach allows Rayonier Inc. (NYSE:RYN) to improve its competitive positioning and long-term growth profile.
6. Boise Cascade Company (NYSE:BCC)
Average Price Target Upside Potential According to Analysts: 22.02%
Number of Hedge Fund Holders: 29
Boise Cascade Company (NYSE:BCC) is a significant player in the North American lumber industry, specializing in engineered wood products and plywood. The company is committed to managing forests responsibly as it relies heavily on timber from forests to produce its products. It also serves as a major wholesale distributor of building materials for both residential and commercial construction.
In the third quarter of 2024, Boise Cascade Company (NYSE:BCC) reported sales of $1.7 billion, down from $1.8 billion in the same period last year. Net income also decreased to $91 million compared to $143.1 million in Q3 2023. This decline reflects a challenging market, with total US housing starts down by 3% and single-family starts down by 1% year-over-year compared to Q3 2024. In the face of market pressures, Boise Cascade Company (NYSE:BCC) has shown resilience by adapting to moderate demand conditions.
In the first three quarters of 2024, Boise Cascade Company (NYSE:BCC) returned $220.5 million to shareholders through dividends and repurchased over 1.2 million shares of its common stock for $158.5 million. This commitment to returning capital demonstrates confidence in its long-term prospects.
On December 10, 2024, the company announced the acquisition of the Parksite door shop in Lakeland, Florida. This strategic move is aimed at expanding the company’s millwork operations to 15 locations and enhancing its product offerings in the state of Florida. Boise Cascade Company’s (NYSE:BCC) focus on strategic investments and shareholder returns positions it well for future growth. The company’s ability to navigate a challenging market while maintaining strong financial practices makes it an attractive stock.
5. Greif Inc. (NYSE:GEF)
Average Price Target Upside Potential According to Analysts: 25.40%
Number of Hedge Fund Holders: 15
Greif Inc. (NYSE:GEF) is a global leader in manufacturing industrial packaging products and services. The company produces a variety of items, including steel, plastic, and fiber drums, jerrycans, intermediate bulk containers, corrugated boxes, and various types of paperboard. The company also offers packaging accessories and services to various industries such as food and beverage, agriculture, chemicals, and pharmaceuticals. The company’s land management subsidiary, Soterra, offers timberland management services. Soterra manages over 240,00 acres of land in the Southeastern US. Greif Inc. (NYSE:GEF) is one of the best land stocks to buy according to analysts.
In the fiscal fourth quarter of 2024, the company reported a net income of $63.4 million, down 6.5% from $67.8 million in the same period last year. The company’s performance was influenced by the ongoing challenges in the industrial sector. On a positive note, in the Paper Packaging & Services segment, Greif Inc. (NYSE:GEF) saw an increase in net sales by $42.9 million, reaching a total of $624.5 million. This growth was mainly due to higher average selling prices linked to increased costs of containerboard and boxboard products.
The company is actively pursuing growth and profitability through strategic initiatives. Greif Inc. (NYSE:GEF) has announced a cost optimization plan aimed at eliminating $100 million in structural costs by 2027 through improved operational efficiencies and network optimization.
Additionally, in September 2024, Greif Inc. (NYSE:GEF) opened a new facility in Pasir Gudang, Malaysia, focusing on manufacturing Intermediate Bulk Containers (IBCs). This expansion underscores the company’s commitment to enhancing its packaging solutions and growing its business. With its diverse product offerings, strategic land management practices, and proactive growth strategies, Greif Inc. (NYSE:GEF) is well-positioned for future success in the land and timber sector, making it an appealing investment opportunity.
4. PotlatchDeltic Corporation (NASDAQ:PCH)
Average Price Target Upside Potential According to Analysts: 33.13%
Number of Hedge Fund Holders: 28
PotlatchDeltic Corporation (NASDAQ:PCH) is a leading timberland owner and lumber manufacturer in the United States. The company operates seven manufacturing facilities that produce lumber and plywood. Managing nearly 2.2 million acres of timberland across nine states, PotlatchDeltic Corporation (NASDAQ:PCH) is one of the best land stocks to invest in.
In the third quarter of 2024, PotlatchDeltic Corporation (NASDAQ:PCH) reported revenues of $255.1 million and a net income of $3.3 million. This represents a decline from the previous year, when revenues were $265.5 million and net income was $23.7 million. However, the company achieved an adjusted EBITDA of $45.9 million, reflecting an impressive 18% margin, indicating solid operational performance despite market challenges.
A key highlight for PotlatchDeltic Corporation (NASDAQ:PCH) in the third quarter was the completion of its sawmill expansion and modernization project in Waldo, Arkansas. This strategic investment is expected to increase the mill’s capacity by 85 million board feet annually and reduce processing costs by approximately 30%. This facility could generate an additional $25 million in adjusted EBITDA under mid-cycle sales conditions once it is fully operational.
Given its extensive timberland holdings, ongoing capacity enhancements, and solid financial management, PotlatchDeltic Corporation (NASDAQ:PCH) is well-positioned for future growth. These factors make it a compelling investment opportunity in the land and timber sector.
3. Weyerhaeuser Company (NYSE:WY)
Average Price Target Upside Potential According to Analysts: 34.90%
Number of Hedge Fund Holders: 29
Weyerhaeuser Company (NYSE:WY) is a major American timberland and lumber company. The company is one of North America’s largest wood products manufacturers, producing items such as engineered lumber, oriented strand board (OSB), plywood, and medium-density fiberboard panels. It owns or manages more than 10 million acres of timberland in the US and 14 million acres in Canada. Weyerhaeuser Company (NYSE:WY) is one of the best land stocks to invest in.
For Q3 2024, the company reported net sales of $1.7 billion, down from $2.0 billion in the same quarter last year. The net income also fell significantly to $28 million compared to $239 million in Q3 2023. However, the company achieved an adjusted EBITDA of $236 million, demonstrating solid operational performance despite a tough market environment.
Weyerhaeuser Company (NYSE:WY) is strategically investing in its future growth. In November 2024, the company announced plans for a new TimberStrand facility in Arkansas with a $500 million investment. This facility is expected to enhance the company’s capacity for engineered wood products and generate over $100 million in annual adjusted EBITDA when fully operational by 2027. Additionally, in July 2024, Weyerhaeuser Company (NYSE:WY) made strategic timberland acquisitions in Alabama, purchasing 84,300 acres for $244 million.
Given its extensive timberland holdings, ongoing investments in production capacity, and strategic acquisitions, Weyerhaeuser Company (NYSE:WY) is well-positioned for future growth. These factors make it an attractive investment opportunity in the land and timber sector.
2. West Fraser Timber Co. Ltd. (NYSE:WFG)
Average Price Target Upside Potential According to Analysts: 36.54%
Number of Hedge Fund Holders: 21
West Fraser Timber Co. Ltd. (NYSE:WFG) is a leading Canadian forestry company that produces a diverse range of wood products, including lumber, plywood, medium-density fiberboard, oriented strand board, plywood, pulp, paper, and wood chips. With over 60 facilities across Canada, the US, the UK, and Europe, West Fraser Timber Co. Ltd. (NYSE:WFG) supplies materials for home construction, industrial applications, and paper products. The company emphasizes sustainable forestry practices to ensure responsible management of its resources.
In the third quarter of 2024, West Fraser Timber Co. Ltd. (NYSE:WFG) reported sales of $1.437 billion, down from $1.705 billion in Q2 2024. The adjusted EBITDA was $62 million, reflecting a 4% margin. This decline was partly due to a $32 million export duty related to lumber from the previous year and mixed demand across its product lines. While there was strong demand for Spruce-Pine-Fir (SPF) lumber and engineered wood products, Southern Yellow Pine (SYP) lumber faced challenges due to a slowdown in repair and remodeling markets.
Despite market challenges, the company has a trailing four-quarter adjusted EBITDA of $630, up from the $561 million reported at year-end 2023. Additionally, West Fraser Timber Co. Ltd. (NYSE:WFG) maintains a robust financial position with over $2 billion in liquidity at the end of the third quarter. The company repurchased 446,460 shares for $35 million during the third quarter of 2024, showcasing its commitment to returning value to shareholders.
In September 2024, West Fraser Timber Co. Ltd. (NYSE:WFG) announced it would indefinitely curtail operations at its Lake Butler sawmill in Florida due to high fiber costs and weak lumber markets. This strategic move is aimed at aligning production capacity with current demand levels. With its diversified product offerings, strong financial health, and proactive management strategies, West Fraser Timber Co. Ltd. (NYSE:WFG) presents a compelling investment opportunity.
1. American Woodmark Corporation (NASDAQ:AMWD)
Average Price Target Upside Potential According to Analysts: 37.79%
Number of Hedge Fund Holders: 22
American Woodmark Corporation (NASDAQ:AMWD) is a prominent cabinet manufacturer. The company produces cabinets under several brands, including American Woodmark, Shenandoah Cabinetry, 1951 Cabinetry, and Timberlake Cabinetry. As one of the largest cabinet makers in the US, it heavily relies on hardwood lumber, which it sources responsibly from suppliers who engage with timber owners for sustainable practices. American Woodmark Corporation (NASDAQ:AMWD) ranks among the best land and timber stocks to buy.
In the second quarter of fiscal 2025, ending October 31, 2024, the corporation reported net sales of $452.5 million, down 4.5% from the previous year. Net income also fell to $27.7 million, down from $30.3 million. This decline was primarily due to reduced demand in the remodeling market and a slowdown in new construction activity over the summer months. Despite these challenges, American Woodmark Corporation (NASDAQ:AMWD) has shown resilience. The company achieved an Adjusted EBITDA of $123.1 million for the first half of fiscal 2025, representing 13.5% of net sales. This indicates a solid operational performance. Management remains focused on controlling discretionary spending and enhancing operational efficiencies, positioning the company favorably for future market improvements.
Additionally, American Woodmark Corporation (NASDAQ:AMWD) is committed to returning value to shareholders, having repurchased approximately 4.1% of its shares outstanding during the first half of fiscal 2025 for $56.5 million. This strategy not only supports share price but also reflects confidence in the company’s long-term prospects.
The company is also investing in digital transformation and platform design to enhance its operational capabilities. These initiatives include optimizing sales processes and ramping up production at facilities in Mexico and North Carolina. Given its strategic focus on growth and efficiency amid current market headwinds, American Woodmark Corporation (NASDAQ:AMWD) presents a compelling investment opportunity in the land and timber sector.
Overall, AMWD ranks first among the 12 best land and timber stocks to buy according to analysts. While we acknowledge the potential of land and timber companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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