Sometimes the fundamental backstory for a stock is so compelling it can make a small earnings miss seem like an insignificant bump in the road. We saw this happen with Weyerhauser (NYSE: WY), which recently reported earnings per share results that came in below Wall Street analysts’ consensus.
Despite the earnings miss reported on Jan. 29, the fundamental foundation for this real estate investment trust (REIT) is exceptionally strong, as the United States is dealing with a massive housing shortage. During its fourth-quarter earnings conference call, Weyerhauser laid out a compelling case for the company.
Weyerhauser is one of the biggest owners of private timberland globally. This REIT owns or manages over 25 million acres of timberland in the United States and Canada. The company also manufactures wood products, including structural lumber, oriented strand board, engineered wood, and other specialty products. Weyerhauser’s end markets are primarily residential, light commercial, and industrial.