Why Shares in This Warren Buffett Holding Soared This Week
Shares in siding and oriented strand board (OSB) company Louisiana-Pacific (NYSE: LPX) had risen by 17.1% for the week as of Friday morning. The little-followed stock is part of Warren Buffett's Berkshire Hathaway portfolio.
That startling rise in the share price was powered by an excellent set of first-quarter results that saw Louisiana-Pacific blow past its guidance and led management to significantly boost its full-year guidance. It was all the more surprising given the weakness reported by other companies (such as Whirlpool) whose businesses are tied to the housing sector.
The company outpaced its earnings guidance in both the siding and OSB segments in the first quarter. The siding segment's adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) of $90 million was significantly better than the company's guidance for $65 million to $70 million, while the OSB segment's adjusted EBITDA -- also $90 million -- was ahead of guidance for $65 million to $75 million.
Source Fool.com
Whirlpool Corp. Stock
With 3 Buy predictions and 3 Sell predictions the community is currently undecided on Whirlpool Corp..
As a result the target price of 87 € shows a slightly positive potential of 9.1% compared to the current price of 79.74 € for Whirlpool Corp..
