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Lumber Liquidators Holdings (LL) Gains As Market Dips: What You Should Know

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In the latest trading session, Lumber Liquidators Holdings closed at $19.07, marking a +0.53% move from the previous day. This move outpaced the S&P 500's daily loss of 0.02%.

Coming into today, shares of the hardwood floors retailer had lost 9.49% in the past month. In that same time, the Retail-Wholesale sector lost 2.34%, while the S&P 500 gained 2.91%.

LL will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2021. The company is expected to report EPS of $0.32, up 220% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $301.83 million, up 31.07% from the prior-year quarter.

LL's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $1.19 billion. These results would represent year-over-year changes of -40.35% and +8.41%, respectively.

Any recent changes to analyst estimates for LL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note LL's current valuation metrics, including its Forward P/E ratio of 13.98. Its industry sports an average Forward P/E of 14.34, so we one might conclude that LL is trading at a discount comparatively.

Also, we should mention that LL has a PEG ratio of 0.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.29 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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