Demand for Lumber Is Surging. Is Weyerhaeuser a Buy?
While most stock investors don't pay close attention to them, commodity prices can influence the share prices of natural resource companies. And one commodity that has been soaring in price lately is lumber.
COVID-19-related production declines combined with an unexpected rebound in housing activity have created shortages. What does that mean for Weyerhaeuser (NYSE: WY), a timber real estate investment trust (REIT) and one of the largest operators of timberland in the world?
Weyerhaeuser owns or controls 11.5 million acres of timberland in the U.S., primarily in the Northwest, the South, and the Upper Midwest/Northeast regions of the country. Weyerhaeuser also manages 14 million acres of timberland in Canada. It serves primarily the U.S. and Asian export markets, and most of its revenue comes from the delivery of logs for construction, wood products, and furniture end users.
Source Fool.com
