5 Best Lumber Stocks To Invest In

4. UFP Industries, Inc. (NASDAQ:UFPI)

Number of Hedge Fund Holders: 19

UFP Industries, Inc. (NASDAQ:UFPI) manufactures and distributes wood and wood alternatives in North America, Europe, Asia, and Australia. The company operates through three segments: Retail, Industrial, and Construction. At the end of the second quarter of 2022, 19 hedge funds were long UFP Industries, Inc. (NASDAQ:UFPI) and held stakes worth $112 million in the company.

This July, DA Davidson analyst Kurt Yinger raised his price target on UFP Industries, Inc. (NASDAQ:UFPI) to $101 from $90 and reiterated a Buy rating on the shares. On July 22, Stifel analyst Stanley Elliott raised his price target on UFP Industries Inc. (NASDAQ:UFPI) to $100 from $95 and maintained a Buy rating on the shares.

UFP Industries, Inc. (NASDAQ:UFPI) is one of the best lumber stocks to buy now and is currently trading cheaply relative to earnings. As of October 7, the stock is trading at a PE multiple of 7x and is offering a forward dividend yield of 1.38%. The company has free cash flows of over $574 million and a trailing twelve-month operating margin of 9.43%.