Short sellers retreat ahead of WY stock’s October earnings – Magic Post

Short sellers retreat ahead of WY stock’s October earnings

 – Magic Post

Weyerhaeuser today

Weyerhaeuser stock logo
WYWY performance for 90 days

Weyerhaeuser

$23.88 +0.04 (+0.15%)

As of 03:59 PM ET

52 week range
$23.23

$32.70

Dividend yield
3.52%

P/E ratio
62.86

Price target
$32.63

The United States has faced a turbulent phase in global trade negotiations, a dynamic that has injected uncertainty into markets. However, as experienced investors know, volatility often hides opportunities – and the timber industry within the basic materials sector may be one such case. A bold call for a potential new bull run is emerging, with Wall Street analysts turning their attention to… Weyerhaeuser Company New York Stock Exchange: Y As an outstanding candidate.

Investors can attribute this emerging opportunity to renewed consolidation within the industry – especially follow-through Rayonair Company New York Stock Exchange: RhineAnnouncement on October 14, 2025, In a Press release on all-stock merger with Potlatch Deltec Company Nasdaq: BCH.

This consolidation is a signal for investors to take action, just as government stakes and other groups in the technology sector have occurred due to the effects of tariffs; These corporate events will likely continue in the timber industry.

Weyerhaeuser stock is now trading at 73% from its 52-week high, and it has all the ingredients bulls need to see more gains in their portfolios.

The height of the wood enhances the Weyerhaeuser’s bullish setup

Some bears were claiming that trade tariffs on wood products would have reduced industrial activity and future profits. While this belief has some truth, the actual effect has been the opposite. Lumber prices have been rising for almost the past quarter 15% since September 2025.

This price reaction can be seen as a boost to the local industry, as most companies seek to offset the costs of additional tariffs by sourcing wood locally instead. Naturally, this directly benefits the margins and earnings per share (EPS) of all companies involved.

Considering that PotlatchDeltic operates most of its land holdings in the northwestern region of the United States, this is one company that is at the top of the profitable list for the coming months. Seeing this theme justifies a merger by Rayonier, Wall Street analysts have proven themselves right with their $49.33 price target for PotlatchDeltic.

But when it comes to the bullish outlook, evidence suggests that Weyerhaeuser has a similar setup today. Amplifying the industry consolidation trend, the company’s exposure to U.S. forestry could lead to a similar bullish outlook.

Weyerhaeuser setup: big risk/reward

Starting with expectations, Weyerhaeuser’s rising case should receive high condemnation in the coming months; Otherwise, markets would not be willing to pay a price-to-earnings (P/E) multiple of 63.3x.

This valuation requires a higher premium than the building products sector average of 27.9 times the P/E.

Rather than shy away from Weyerhaeuser because of its value, investors can rely on its $32.63 per share price target, which reflects the Wall Street consensus. Relative to today’s low prices, this view implies an upside potential of 36%.

Weyerhaeuser stock forecast today

12-month stock price forecast:
$32.63
Moderate purchase
Based on 11 analyst ratings
Current price $23.89
High expectations $38.00
Average expectations $32.63
Low expectations $27.00

Weyerhaeuser stock forecast details

These analysts are not the only ones ready to express their optimism about Weyerhauser’s future. Institutional buyers from Allspring Global Investments Holdings boosted their position in Weyerhaeuser shares by 2.8% in October 2025, bringing their net holdings to $261 million today.

This vote of confidence, combined with bullish analyst forecasts, has weighed on the bearish side of the equation.

Over the past month, short interest in Weyerhaeuser has fallen 13%, signaling a potential bearish capitulation as short sellers realize the stock is far from yearly highs and optimism in the industry is returning. Going back to the margin and EPS support on higher lumber prices, here’s something investors should consider.

On July 24, 2025, Weyerhaeuser reported second-quarter earnings with EPS of 12 cents, beating the MarketBeat consensus of 10 cents by 20%. Now that the quarter has only covered the beginning of the timber rally, meaning the upcoming quarterly release on October 30 should lead to a more robust EPS growth rate.

If so, Weyerhaeuser could also become a takeover (or merger) target, given its exposure to US demand and a market capitalization of $17 billion, putting it within reach of other big players in the space.

With EPS likely to beat by the end of October, Wall Street analysts are also under pressure to raise their targets and justify the price-to-earnings premium through this above-average growth.

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