West Fraser Timber (WFG.TO) Buy, Sell or Hold

Home

Daily Stock Opinions and Ratings

West Fraser Timber (WFG.TO)

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

97.37

-1.81 (1.82%)

as of Jun 19, 2026, 8:00:00 pm Market Open.

122 watching

BUY

The lumber stocks had an incredible run with lumber prices running up. One of the biggest player in lumber. It paid some extra dividends. Lumber prices are now normalizing. Biggest and probably the safest.

HOLD

Lumber stocks have dropped only 10-15% in the last little bit. Longer term, should benefit from increasing US housing demand. US represents about 65% of its revenue. Concern is tariffs. Valuation is a large discount to historical averages. Hold, and watch your stop losses.

WATCH

Commodity prices have been so strong and they generated a lot of cash flow. But lumber prices have come off. There could be a leg higher on these names, but you have to see what happens to the commodity price. Watch for another up-leg.

Premium content

Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly With lumber prices up 300% and demand strong for renovations, it is challenging to find an entry into the space at good value. This is the sweet spot for WFG, having 60 facilities in Canada, the US, United Kingdom and Europe. Recently reported sales were up 81%. It trades at 8x earnings, compared to peers over 17x. It pays a small dividend, backed by a payout ratio of under 10% of cashflow. We would buy this with a stop loss at $60, looking to achieve $136 -- upside potential over 38%. Yield 0.82% (Analysts’ price target is $135.70)

DON'T BUY

Timber has been a great place to be this year. Not sure why it's dropped today. Well run, but an expensive multiple at 3.7x book value. How long will the lumber cycle last? Their cycles tend to be longer than other commodities.

TOP PICK

Lumber prices have soared YOY over 300%. Free cash flow yield at 14.4% is very high. The latest report said that earnings were up 50% and earnings are forecast to grow 35% to $16 ROE in 2021 at a PE of 6.4x. Analyst estimates have jumped 81%. (Analysts’ price target is $112.68)

HOLD

The giant after their acquisition. Scores on valuation and price momentum. More expensive than Interfor. Brookfield, a major owner, has been selling their stake. Hold for now.

BUY

An exciting time in home builders. Under made homes for several years in the US. A powerful rally. Likes that WFG is now a combined entity. WEF is a small cap and is more whippy. Both are good.

COMMENT

Will the Buy American campaign affect WFT? He expects their coming report to be strong, given the housing boom, including renovations. WFT recently bought Norbord, which signals that they expects this housing boom to last years. All timber stocks are lumpy with returns happening in pockets (either really good returns or bad returns). So, consider lumber a trade and not a buy-and-hold. Buy America: Companies like WFT are changing geographies according to asset ownership from entirely Canada to abroad, including the U.S. Their ticker will change to WFG on the TSX. They likely have some American assets. Potential tariffs on software lumber will continue to be a risk.

WATCH

It is almost at the '08/'09 level. It has collapsed below 2.5 times book. If you are patient, we are getting to an area of lows. The twelve month earnings forecast is minus 14 cents. He figures $22 for a bottom in the share price.

DON'T BUY

Doesn't buy forest product companies as they're very cyclical. Pricing is sensitive to demand. Cyclical sectors are out of favour as we're late in the cycle, and economy is soft.

PAST TOP PICK

(A Top Pick Dec 24/19, Down 7%) He'd worry if it breaks below around $56 and sell. After this current market correction, WFT should break above $60. This should be a good year for lumber stocks with fine upside, which was why he recommended it.

BUY

A great company and there has been some recent volatility from the back off on the Canfor opportunity. He likes the space here. There was a huge run-up on the US home-builders space. The fundamentals are tightening and it could be a good year for this company.

TOP PICK

Has broken out, showing higher highs since mid-2019. Like oil sticks, lumber is poised to rise as the economy accelerates. The sweet spot lies ahead. He likes this. Good reward/risk. (Analysts’ price target is $64.29)

BUY

They had a huge run and is now on the low part of a head and shoulders. Buy it now, which is in an interesting pocket.

Showing 16 to 30 of 143 entries

Most Recent Experts

Stockchase Insights

5i Research

Brian Acker, CA

Acker Finley Inc.

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

David Burrows

Barometer Capital Management

Jim Cramer - Mad Money

CNBC

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

West Fraser Timber (WFG.TO)