Weyerhaeuser Company is principally engaged in the growing and harvesting of timber and the manufacture, distribution and sale of forest products, real estate development and construction, and other real estate related activities. Its business segments are timberlands; wood products;pulp, paper and packaging; and real estate and related assets. In reality they are a timber land REIT.
The company came to my notice when I was screening on Barchart for companies hitting the most frequent new highs. The 18 new highs and price appreciation of 19.73% in the last month has earned the stock a 96% Barchart technical buy signal. The stock trades around 21.52 which is well above its 50 day moving average of 18.49. The upward move is steady and the Relative Strength Index is 75.51%,
Wall Street brokerages have bright projections for increases in sales and earnings and have published 5 buy and 9 hold recommendations for their clients. Revenues are projected to increase 16.90% this year and also by another 4.60% next year. The real story is in the EPS estimates of an increase of 120.00% this year, 41.50% next year and another 2.50% annually for the next 5 years.
The general investor sentiment is high with the Motley Fool CAPS members voting 338 to 69 that the stock will beat the market. The All Stars agree with a vote of 129 to 21.
I think the steady income stream plus efficiencies planned will make this a really great total return stock. Dividend could easily double in the next few years.
Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs. He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.
Through Marketocracy Capital Management you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High portfolio.
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