Published on 25 Apr 2022 on InvestorPlace via Yahoo Finance

3 Stocks to Watch as Lumber Prices Fall

Resolute Forest Products (NYSE:RFP): Improving bottom-line growth and net cash positive position bolsters the lumber stockCanfor (OTCMKTS:CFPZF): Strong balance sheet and low valuation metrics make the sustainable lumber producer a buyBoise Cascade (NYSE:BCC): Strong 2021 operational performance makes BCC well-positioned to capture additional opportunities

In recent months, lumber stocks outperformed equity markets, following surging lumber prices and persisting supply chain disruptions plaguing the market since the start of the pandemic.

Lumber prices reached a yearly high of $1,477.4 per thousand board feet (mbf) at the beginning of March 2021, since then wood prices slipped 36.4% to $939.3/mbf. Soaring inflation and interest rate increases prompted this sharp slip. With these evolutions, people will be less likely to spend in the future, which should curb wood demand and pressure lumber stocks.