On August 8, the US Commerce Department’s International Trade Agency reported that it will raise the countervailing duties on Canadian softwood lumber. The duty would increase from 6.74% to 14.63%.
This decision came after the department found that Canadian softwood lumber was being unfairly subsidized at rates between 12.12% and 16.82%.
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Previously, on August 5, Canada’s Prime Minister Mark Carney announced that the Canadian government would support softwood lumber producers. Canada will be providing up to C$1.2 billion (approximately $870 million) to help these producers deal with the countervailing and anti-dumping duties by the US.
Speaking to reporters in the Pacific province of British Columbia, Prime Minister Carney said that the government would offer up to C$700 million in loan guarantees to deal with the immediate pressures facing the softwood lumber sector. Canada would also provide C$500 million to support product development and market diversification.
The US has for many years accused Canada of dumping lumber on the domestic market. The US has imposed both anti-dumping and countervailing duties on imports of timber for building houses. However, Canada denies that it is dumping lumber.
With this background in mind, let’s take a look at the 8 best lumber stocks to buy according to hedge funds.
Aerial shot of a building site stocked with lumber and other building materials.
Our Methodology
To compile our list of the 8 best lumber stocks to buy according to hedge funds, we used stock screeners from Finviz and Yahoo Finance to find the largest lumber and wood companies. We also reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best lumber stocks. Next, we focused on the top 8 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 8 best lumber stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8 Best Lumber Stocks to Buy According to Hedge Funds
8. West Fraser Timber Co. Ltd. (NYSE:WFG)
Number of Hedge Fund Holders: 18
West Fraser Timber Co. Ltd. (NYSE:WFG) is one of the best lumber stocks to buy according to hedge funds. On July 25, TD Securities analyst Sean Steuart reduced the firm’s price target for West Fraser Timber Co. Ltd. (NYSE:WFG) from $98 to $96 while keeping a Buy rating.
This decision came after West Fraser Timber Co. Ltd. (NYSE:WFG) reported results for the second quarter of 2025. TD Securities described the report as “noisy” with EBITDA pressures worsening because of inventory write-downs.
West Fraser Timber Co. Ltd. (NYSE:WFG) said that the demand for many of its wood-based building products slowed down in Q2 2025 as spring building activity was weaker than expected.
Despite these challenges, TD Securities sees West Fraser Timber Co. Ltd. (NYSE:WFG) as a top pick in its sector.
West Fraser Timber Co. Ltd. (NYSE:WFG) is a diversified wood products company that produces lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals. The company has over 50 facilities in Canada, the United States, the United Kingdom, and Europe.
7. UFP Industries, Inc. (NASDAQ:UFPI)
Number of Hedge Fund Holders: 22
UFP Industries, Inc. (NASDAQ:UFPI) is one of the best lumber stocks to buy according to hedge funds. On July 23, 2025, UFP Industries, Inc. (NASDAQ:UFPI) reported that its Board of Directors declared a quarterly cash dividend of $0.35 per share.
This dividend payment represents an increase of 6% compared to last year. UFP Industries, Inc. (NASDAQ:UFPI) will pay the dividend on September 15, 2025, to shareholders who own the stock as of September 1, 2025.
Previously, on July 24, 2024, UFP Industries, Inc.’s (NASDAQ:UFPI) Board of Directors authorized the repurchase of up to $200 million worth of shares through July 31, 2025. Then, on April 23, 2025, the Board increased the repurchase authorization to $300 million.
As of July 25, 2025, UFP Industries, Inc. (NASDAQ:UFPI) has repurchased about 2.6 million shares for $269.6 million under this authorization.
On July 23, 2025, UFP Industries, Inc.’s (NASDAQ:UFPI) Board of Directors also announced a new share repurchase authorization for up to $300 million through July 31, 2026. This share repurchase authorization replaces the company’s previous repurchase authorization.
UFP Industries, Inc. (NASDAQ:UFPI) is a holding company that manufactures and distributes products for construction, packaging, and industrial applications. It is a major supplier of lumber to the manufactured housing industry. The company is also North America’s largest converter of softwood lumber.
