Seattle, Washington-based Weyerhaeuser Company (WY), is one of the world's largest private owners of timberlands, and owns or controls approximately 10.4 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Valued at $16.1 billion by market cap, the company primarily grows and harvests trees, develops and constructs real estate, and makes a range of forest products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and WY perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - specialty industry. Weyerhaeuser's strengths include its extensive timberland holdings, which ensure a sustainable supply of raw materials and strengthen its strong brand reputation for environmental stewardship. The company's operational efficiency optimizes production, reduces waste, and lowers costs, enabling competitive pricing and adaptability to market demands.
Despite its notable strength, WY slipped 32.4% from its 52-week high of $32.70, achieved on Dec. 6, 2024. Over the past three months, WY stock has declined 12.5%, underperforming the Dow Jones Industrials Average’s ($DOWI) 4% gains during the same time frame.
In the longer term, shares of WY fell 18.1% on a six-month basis and dipped 30.3% over the past 52 weeks, underperforming DOWI’s six-month gains of 11.2% and 7.1% returns over the last year.
To confirm the bearish trend, WY has been trading below its 50-day moving average since mid-March, with some fluctuations. The stock has been trading below its 200-day moving average over the past year, with slight fluctuations.
On Oct. 30, WY shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $0.06 exceeded Wall Street expectations of an adjusted loss of $0.07 per share. The company’s revenue was $1.72 billion, topping Wall Street forecasts of $1.65 billion.
In the competitive arena of REIT - specialty, PotlatchDeltic Corporation (PCH) has taken the lead over WY, with a marginal downtick on a six-month basis and 11.8% losses over the past 52 weeks.
Wall Street analysts are reasonably bullish on WY’s prospects. The stock has a consensus “Moderate Buy” rating from the 13 analysts covering it, and the mean price target of $30.18 suggests a notable potential upside of 36.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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