Stock of the Day

April 23, 2020

Weyerhaeuser (WY)

$29.69
-$0.29 (-1.0%)
Market Cap: $21.75B

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.

Weyerhaeuser Bull Case

Here are some ways that investors could benefit from investing in Weyerhaeuser:

  • Weyerhaeuser has recently seen an upgrade in earnings estimates for Q3 2025, with analysts projecting earnings of $0.22 per share, indicating positive growth potential.
  • The stock is currently trading at $29.20, which may present a buying opportunity for investors looking for value in the market.
  • Multiple analysts have upgraded their ratings on Weyerhaeuser, with a consensus rating of "Moderate Buy" and a target price of $35.00, suggesting confidence in the company's future performance.
  • The company has a solid market capitalization of $21.21 billion, which reflects its stability and presence in the industry.
  • Weyerhaeuser recently increased its quarterly dividend from $0.20 to $0.21 per share, demonstrating a commitment to returning value to shareholders.

Weyerhaeuser Bear Case

Investors should be bearish about investing in Weyerhaeuser for these reasons:

  • The stock has experienced a decline of 1.8%, which may indicate volatility and potential risks in the short term.
  • Weyerhaeuser's price-to-earnings (P/E) ratio is 53.08, which is relatively high and may suggest that the stock is overvalued compared to its earnings.
  • The company has a high dividend payout ratio of 145.46%, which could raise concerns about sustainability if earnings do not continue to grow.
  • Despite recent upgrades, the stock has a 12-month low of $26.73, indicating that it has faced significant downward pressure in the past year.
  • The beta of 1.42 suggests that Weyerhaeuser's stock is more volatile than the market, which could pose risks for conservative investors.

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