5 Best Land and Timber Stocks To Buy

2. Louisiana-Pacific Corporation (NYSE:LPX)

Number of Hedge Fund Holders: 30

Louisiana-Pacific Corporation (NYSE:LPX) offers building solutions primarily for the new home construction, repair, remodeling, and outdoor structure markets. The company is involved in multiple aspects of timber production, including timber harvesting, processing, and distribution. Louisiana-Pacific Corporation (NYSE:LPX) sources timber from their own timberlands and other suppliers, ensuring a steady supply of quality wood products. It is one of the best land and timber stocks to invest in. 

On May 4, TD Securities upgraded Louisiana-Pacific Corporation (NYSE:LPX) to Buy from Hold with a price target of $75, up from $63. The firm believes that the margin pressure experienced in the Siding segment, as indicated in the Q1 report, will be temporary. They also consider the management’s Q2 guidance to be conservative. TD Securities expects that Q1 will mark the lowest point for earnings and anticipates that the Siding segment’s excess inventory in the distribution channels will gradually improve in the upcoming quarters. 

According to Insider Monkey’s first quarter database, 30 hedge funds were bullish on Louisiana-Pacific Corporation (NYSE:LPX), and Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 7 million shares worth $382 million. 

SouthernSun SMID Cap Strategy made the following comment about Louisiana-Pacific Corporation (NYSE:LPX) in its Q1 2023 investor letter:

“We initiated a position in Louisiana-Pacific Corporation (NYSE:LPX) during the quarter. LPX is a leading producer of oriented strand board (OSB) and siding, primarily in North America. In recent years, management has transformed the business from a focus on producing commodity OSB products into a “building solutions” company producing more value-add OSB products and engineered wood siding. The company is organized into two divisions – siding solutions and OSB.

LPX’s siding solutions segment produces a full line of engineered wood siding and related products. These products generally offer for homeowners superior aesthetics and performance properties and, for contractors, reduced labor cost and better ease of installation relative to competing alternatives. In addition, they have superior sustainability characteristics to most other siding substrates. As partial proof of its value proposition and growing market acceptance, LPX siding has grown 60% over the last two years, greatly outperforming U.S. single-family housing starts which grew just 1.4% over these two years…” (Please click here to read the full text)