Prediction of Weyerhaeuser Stock Movement: Insights from Wall Street Analysts
Weyerhaeuser Company (WY), a Seattle-based real estate investment trust (REIT), is currently experiencing a mixed outlook in the stock market. Over the past 52 weeks, WY shares have traded between $24.10 and $34.03, and are currently priced around $25.70 to $25.80 (as of early August 2025). However, the stock is trading below key moving averages, signalling a bearish technical trend.
In terms of WY's performance, the company reported robust Q2 2025 results with $1.9 billion in net sales and $336 million adjusted EBITDA. Despite a revenue decline of 2.8% year-over-year in the latest quarter, earnings per share (EPS) of $0.12 beat analyst estimates. Analysts forecast an EPS of about 0.78 for the current fiscal year.
The stock’s price-to-earnings (P/E) ratio is high, around 67, with a forward P/E near 75, raising concerns about valuation. Dividend yield stands at approximately 3.3%, with a recent dividend of $0.84 per share.
WY's technical indicators are weak, with the stock trading below its 50-day, 100-day, and 200-day moving averages. The Relative Strength Index (RSI) at 36.7 signals oversold territory, and the MACD is negative, both suggesting bearish momentum.
The consensus rating among 12 analysts covering the stock is a "Moderate Buy," reflecting some optimism due to strategic investments and potential undervaluation but with warnings about near-term risks from earnings pressures and broader macroeconomic headwinds. The average price target among analysts is about $32.88, indicating upside potential of nearly 29% from current levels.
Sector headwinds include declining wood product margins and interest rate concerns. Trade policy uncertainties such as tariffs add complexity, though the company’s solid fundamentals provide some buffer.
On Jul. 28, Truist Securities reiterated its "Hold" rating on Weyerhaeuser, and lowered the price target from $30 to $29. For the current fiscal year, ending in December 2025, analysts expect WY's EPS to decline 41.5% year-over-year to $0.31.
WY manages over 10 million acres of forests in the U.S. and has long-term licenses in Canada. The company is a key player in sustainable forestry, wood products manufacturing, and land development.
Investors should approach WY with caution due to the mixed outlook. While the company's strong underlying business performance and high dividend yield make it appealing, the high valuation and weak technical indicators suggest near-term risks.
[1] Yahoo Finance [2] MarketWatch [3] Seeking Alpha [5] Investor's Business Daily
Disclosure: The author of this article does not hold positions in the securities mentioned in this article on the date of publication.
Note: The Real Estate Select Sector SPDR Fund has gained 2.8% over the past 52 weeks, and the broader S&P 500 Index has rallied 21.5% over the same period.
[1] Initiating an investment in Weyerhaeuser Company (WY) could be a strategic move for those seeking a consistent income flow due to the company's high dividend yield. [2] However, potential investors should take heed of the stock's high valuation and weak technical indicators, which indicate near-term risks and underscore the importance of conducting a comprehensive analysis of the company's financials before making an investment decision. [3] Furthermore, sector headwinds, such as declining wood product margins and interest rate concerns, along with trade policy uncertainties, add complexity to the investment environment.
