WFG Should I Buy
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West Fraser Timber Co Ltd (WFG) is not a strong buy for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock exhibits weak technical signals, declining financial performance, and mixed analyst sentiment. While the options data suggests a slight bullish sentiment in the short term, the lack of positive catalysts and poor growth trends make it unsuitable for immediate investment.
The MACD is negative and expanding, indicating bearish momentum. RSI is neutral at 30.616, and moving averages are converging, showing no clear trend. The stock is trading near its S1 support level (70.623) but is close to breaching S2 (69.04), signaling potential downside risk.
No significant positive catalysts identified. The options data shows slight short-term bullish sentiment.
Declining financial performance with a 17.08% YoY revenue drop and a significant negative EPS (-9.59). Analysts have lowered price targets and downgraded ratings, citing tepid demand conditions. No recent news or influential trading activity to support the stock.
In Q4 2025, revenue dropped by 17.08% YoY to $1.165 billion. Net income improved but remains negative at -$751 million. EPS increased to -9.59 but is still in negative territory. Gross margin declined sharply by 66.21% YoY to 6.18%, reflecting operational inefficiencies.
Analysts have mixed views. RBC Capital lowered the price target to $85 from $91 but maintained an Outperform rating, citing supply adjustments in the lumber sector. CIBC downgraded the stock to Neutral with a C$96 price target, reflecting concerns over weak demand in the forest products group.
