We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
La-Z-Boy Incorporated (LZB) Hit a 52 Week High, Can the Run Continue?
Read MoreHide Full Article
Have you been paying attention to shares of La-Z-Boy (LZB - Free Report) ? Shares have been on the move with the stock up 19.7% over the past month. The stock hit a new 52-week high of $33.06 in the previous session. La-Z-Boy has gained 44.7% since the start of the year compared to the 11% move for the Zacks Consumer Discretionary sector and the -2.3% return for the Zacks Furniture industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 21, 2023, La-Z-Boy reported EPS of $0.91 versus consensus estimate of $0.66 while it beat the consensus revenue estimate by 7.98%.
For the current fiscal year, La-Z-Boy is expected to post earnings of $3.41 per share on $2.27 billion in revenues. This represents a 9.97% change in EPS on a -3.6% change in revenues. For the next fiscal year, the company is expected to earn $2.73 per share on $2.18 billion in revenues. This represents a year-over-year change of -20.03% and -4%, respectively.
Valuation Metrics
La-Z-Boy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
La-Z-Boy has a Value Score of A. The stock's Growth and Momentum Scores are D and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 8X versus its peer group's average of 8.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, La-Z-Boy currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if La-Z-Boy passes the test. Thus, it seems as though La-Z-Boy shares could still be poised for more gains ahead.
How Does LZB Stack Up to the Competition?
Shares of LZB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is American Woodmark Corporation (AMWD - Free Report) . AMWD has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. American Woodmark Corporation beat our consensus estimate by 29.48%, and for the current fiscal year, AMWD is expected to post earnings of $6.90 per share on revenue of $2.09 billion.
Shares of American Woodmark Corporation have gained 9.3% over the past month, and currently trade at a forward P/E of 8.39X and a P/CF of 6.29X.
The Furniture industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for LZB and AMWD, even beyond their own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
La-Z-Boy Incorporated (LZB) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of La-Z-Boy (LZB - Free Report) ? Shares have been on the move with the stock up 19.7% over the past month. The stock hit a new 52-week high of $33.06 in the previous session. La-Z-Boy has gained 44.7% since the start of the year compared to the 11% move for the Zacks Consumer Discretionary sector and the -2.3% return for the Zacks Furniture industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 21, 2023, La-Z-Boy reported EPS of $0.91 versus consensus estimate of $0.66 while it beat the consensus revenue estimate by 7.98%.
For the current fiscal year, La-Z-Boy is expected to post earnings of $3.41 per share on $2.27 billion in revenues. This represents a 9.97% change in EPS on a -3.6% change in revenues. For the next fiscal year, the company is expected to earn $2.73 per share on $2.18 billion in revenues. This represents a year-over-year change of -20.03% and -4%, respectively.
Valuation Metrics
La-Z-Boy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
La-Z-Boy has a Value Score of A. The stock's Growth and Momentum Scores are D and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 8X versus its peer group's average of 8.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, La-Z-Boy currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if La-Z-Boy passes the test. Thus, it seems as though La-Z-Boy shares could still be poised for more gains ahead.
How Does LZB Stack Up to the Competition?
Shares of LZB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is American Woodmark Corporation (AMWD - Free Report) . AMWD has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. American Woodmark Corporation beat our consensus estimate by 29.48%, and for the current fiscal year, AMWD is expected to post earnings of $6.90 per share on revenue of $2.09 billion.
Shares of American Woodmark Corporation have gained 9.3% over the past month, and currently trade at a forward P/E of 8.39X and a P/CF of 6.29X.
The Furniture industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for LZB and AMWD, even beyond their own solid fundamental situation.