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.
6. Mercer International Inc. (NASDAQ:MERC)
Number of Hedge Fund Holders: 25
Mercer International Inc. (NASDAQ:MERC) is one of the best lumber stocks to buy according to hedge funds. On August 5, TipRanks reported that TD Securities reduced the price target for Mercer International Inc. (NASDAQ:MERC) from $3.50 to $3.00 while keeping a Hold rating.
This decision came after the company reported its second quarter 2025 results.
Mercer International Inc.’s (NASDAQ:MERC) operating results for the second quarter of 2025 were impacted by ongoing uncertainties in global trade. Additionally, the weakening of the US dollar had a negative impact of about $26 million on the company’s Operating EBITDA for the second quarter of 2025 compared to the first quarter.
Due to the uncertain market situation, Mercer International Inc. (NASDAQ:MERC) decided to pause its quarterly dividend. The management said that the company will be looking to use its capital carefully during this time.
Mercer International Inc. (NASDAQ:MERC) is also working on implementing cost reduction initiatives and operational efficiency measures as it navigates this economic cycle. The company has a program called “One Goal One Hundred,” which aims to improve profitability by $100 million by the end of 2026, using 2024 as a baseline. The company expects to achieve $25 million in cost savings by the end of 2025.
Mercer International Inc. (NASDAQ:MERC) is a global forest products company that produces pulp, lumber, cross-laminated timber, glulam, pallets, and biofuels. The company has operations in the US, Canada, and Germany.
5. PotlatchDeltic Corporation (NASDAQ:PCH)
Number of Hedge Fund Holders: 26
PotlatchDeltic Corporation (NASDAQ:PCH) is one of the best lumber stocks to buy according to hedge funds. On July 29, Citi analyst Anthony Pettinari reiterated a Buy rating on PotlatchDeltic Corporation (NASDAQ:PCH) with a price target of $47.
This decision came after PotlatchDeltic Corporation (NASDAQ:PCH) reported Q2 2025 results. The firm highlighted the company’s growth potential despite recent challenges.
The company’s Timberland segment delivered a strong performance with better-than-expected EBITDA. This was supported by the increase in Northern sawlog prices and harvest volumes that surpassed guidance.
This performance in Timberlands helped offset the weaker performance in PotlatchDeltic Corporation’s (NASDAQ:PCH) Wood Products segment, which was impacted by soft demand across lumber markets.
The company is also working on strategic projects like increasing output at the Waldo site. PotlatchDeltic Corporation (NASDAQ:PCH) also aims to ship between 310 million to 320 million board feet of lumber in the third quarter, which would be a quarterly record.
Additionally, PotlatchDeltic Corporation (NASDAQ:PCH) is actively repurchasing shares, which shows confidence in its financial condition and future outlook.
PotlatchDeltic Corporation (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns timberlands and manufactures lumber, plywood, and wood products in the US.
4. Simpson Manufacturing Co., Inc. (NYSE:SSD)
Number of Hedge Fund Holders: 30
Simpson Manufacturing Co., Inc. (NYSE:SSD) is one of the best lumber stocks to buy according to hedge funds. On July 29, DA Davidson increased its price target for Simpson Manufacturing Co., Inc. (NYSE:SSD) from $180 to $185 and kept a Neutral rating.
This decision came after Simpson Manufacturing Co., Inc. (NYSE:SSD) shared results for its second quarter of 2025. The results surpassed DA Davidson’s expectations in both revenue and profits. This performance was driven by slightly better than expected sales in North America and price increases.
DA Davidson pointed out that Simpson Manufacturing Co., Inc.’s (NYSE:SSD) pricing strategy seems to be working well. This helped the company reaffirm its forecast for the 2025 EBIT margin, even when market demand expectations have been lowered.
The new price target of $185 represents about 13 times the firm’s estimated EBITDA for 2026 for Simpson Manufacturing Co., Inc. (NYSE:SSD).
Despite lifting the price target, DA Davidson kept its Neutral rating. However, the firm did point out that the company has “an increasingly attractive go-forward setup.”
Simpson Manufacturing Co., Inc. (NYSE:SSD) designs, engineers, and manufactures wood construction products like connectors, truss plates, fastening systems, fasteners, and shear walls. It also manufactures concrete construction products. The company’s building product solutions cater to both the residential and commercial markets in North America and Europe.
3. Boise Cascade Company (NYSE:BCC)
Number of Hedge Fund Holders: 36
Boise Cascade Company (NYSE:BCC) is one of the best lumber stocks to buy according to hedge funds. On July 31, Boise Cascade Company (NYSE:BCC) reported that its Board of Directors announced a quarterly dividend of $0.22 per share to common stockholders.
This dividend payment represents an increase of 5% or $0.01 per share. Boise Cascade Company (NYSE:BCC) will pay this quarterly dividend on September 17, 2025, to holders of its common stock of record as of September 2, 2025.
In the first six months of 2025, Boise Cascade Company (NYSE:BCC) also spent $86 million to repurchase 837,352 shares of its common stock. In July 2025, the company repurchased another 117,000 shares of its common stock for about $10 million.
After these repurchases, the company still has about 850,000 shares left to buy under its current share repurchase program.
Boise Cascade Company (NYSE:BCC) is one of the leading producers of engineered wood products and plywood in North America. It is also a major wholesale distributor of building materials in the US.
2. Weyerhaeuser Company (NYSE:WY)
Number of Hedge Fund Holders: 43
Weyerhaeuser Company (NYSE:WY) is one of the best lumber stocks to buy according to hedge funds. On July 25, DA Davidson reaffirmed its Buy rating for Weyerhaeuser Company (NYSE:WY) with a price target of $35. This decision came after the company shared its second-quarter 2025 results.
The company reported quarterly results that surpassed DA Davidson’s estimates, which were recently lowered. This performance was driven by higher contributions from Weyerhaeuser Company’s (NYSE:WY) Real Estate segment.
Weyerhaeuser Company (NYSE:WY) provided an outlook for the third quarter largely in line with expectations, as pointed out by DA Davidson. However, current prices for lumber and oriented strand board (OSB) could pose challenges to estimates, which assume some recovery as the third quarter progresses.
In the second quarter, Weyerhaeuser Company (NYSE:WY) significantly increased its share repurchase activity. Despite this, DA Davidson believes these buybacks could slow down because of the company’s leverage and the timing of timberland acquisitions and divestitures.
Weyerhaeuser Company (NYSE:WY) is an American timberland and lumber company. It owns or manages timberlands in the US and Canada. The company is one of the largest wood products manufacturers in North America, producing engineered lumber, oriented strand board (OSB), plywood, and medium-density fiberboard panels.
1. Louisiana-Pacific Corporation (NYSE:LPX)
Number of Hedge Fund Holders: 50
Louisiana-Pacific Corporation (NYSE:LPX) is one of the best lumber stocks to buy according to hedge funds. On August 1, Louisiana-Pacific Corporation (NYSE:LPX) reported that its Board of Directors has announced a quarterly cash dividend of $0.28 per share to common stockholders.
Louisiana-Pacific Corporation (NYSE:LPX) will pay this dividend on August 29, 2025, to stockholders of record on August 15, 2025.
Previously, during the second quarter of 2025, Louisiana-Pacific Corporation (NYSE:LPX) paid $19 million in cash dividends.
As of June 30, 2025, the company had a total liquidity of $1.1 billion.
Louisiana-Pacific Corporation (NYSE:LPX) is a building solutions company that manufactures engineered wood products that are used by builders, remodelers, and homeowners around the world.
While we acknowledge the potential of LPX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LPX and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
