One of the top players in the forest products industry, Canada-based Resolute Forest Products (NYSE:RFP), has generated significant returns over the past few months on a hike in demand for wood products thanks to the red-hot housing market. However, does the company’s stock have room for further gains? Let’s find out.Headquartered in Montreal, Canada, Resolute Forest Products Inc. (RFP) is a market leader in the forest products industry, offering a range of products that include market pulp, tissue, wood products and specialty papers. Its share price has increased nearly eight-fold from its 52-week low of $1.87, which it hit on June 29, 2020. The stock has gained 124.3% so far this year to close yesterday’s trading session at $14.67.
Its impressive performance can be attributed primarily to increasing demand for lumber in a red-hot housing market. In its first quarter earnings release, company President and CEO Remi G. Lalonde said, “This has been a very good quarter for our strong and growing wood products business as the lumber tailwind continues.”
On March 9, 2021, RFP announced its commitment to reduce absolute greenhouse gas (GHG) emissions by 30% by 2025 versus 2015 levels. So, we think RFP looks nicely positioned to continue gaining in the coming months.