- Universal Forest Products (UFPI) is an example of what it looks like when Barchart’s indicators are all flashing red.
- Shares just hit a new two-year low and have a 100% “Sell” opinion from Barchart.
- UFPI stock is trading below all of its key moving averages, and its fundamentals look weak too.
- Price action in this hard-hit stock reflects broader challenges in the housing market and economy.
Today’s Featured Stock
Someone call Taylor Swift… The hit singer may not need to “knock on wood” anytime soon thanks to celebrity fiance Travis Kelce, but lumber stocks are in need of some good luck.
Today’s Chart of the Day focuses on one in particular, Universal Forest Products (UFPI). The company supplies wood and wood composite to retail, industrial, and construction markets. Across these three buckets, UFP supports everyone from do-it-yourself homeowners to homebuilders and RV makers.
And like many of its peers, 2025 has been tough for Universal Forest Products. The company said on its Q2 earnings call that it continues to face “ongoing soft end market demand and competitive pricing pressures.”
This comes as lumber (LBX25) prices have been under pressure, with futures prices down more than 10% over the past three months. Trade uncertainty, with 10% tariffs on most imported lumber products, and housing market weakness, have hit demand for lumber.
What I’m Watching
We typically find our Chart of the Day features by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. Today’s feature is the opposite, and shows how effective Barchart’s tools can be at issuing warnings. The Trend Seeker signaled a new “Sell” on Sept. 17.
UFPI Price vs. Daily Moving Averages:
Barchart Technical Indicators for UFPI
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
UFPI hit a two-year low of $89.76 in intraday trading on Oct. 9.
- UFPI has a Weighted Alpha of -33.45.
- Universal Forest Products has an 100% “Sell” opinion from Barchart.
- The stock has lost 32.75% over the past year.
- UFPI has a Trend Seeker “Sell” signal.
- The stock has made 1 new high this month but is down 9.26%.
- Relative Strength Index (RSI) is at 33.89.
- There’s a technical support level at $89.50.
Don’t Forget the Fundamentals
- $5.3 billion market capitalization.
- Revenue is projected to decline 2.6% this year before gaining 4.3% next year.
- Earnings are projected to decline 17.1% this year before gaining 15% next year.
Analyst and Investor Sentiment on UFPI
It looks like analysts have soured on Universal Forest Products over the last three months.
- The Wall Street analysts tracked by Barchart have issued 2 “Strong Buy” ratings, 4 “Hold” ratings and 1 “Strong Sell.”
- Their average price targets are between $110 and $135.
The Bottom Line on Universal Forest Products
Universal Forest Products is caught up in several macroeconomic headwinds, but its management says it is positioning for “above-market growth” and margin expansion as demand and pricing normalizes. From a technical standpoint, its RSI has been trending lower but still remains above the “oversold” threshold at 30. With analysts forecasting negative earnings and revenue for 2025 and Barchart’s indicators flashing red, the turnaround story in this lumber stock is likely still a ways away.
You can learn more about Barchart’s technical indicators here and watch a video explaining Barchart Opinion here.
Today’s Chart of the Day was written by Sarah Holzmann. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
