1-Star Stocks Poised to Plunge: La-Z-Boy?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, furniture maker La-Z-Boy (NYS: LZB) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at La-Z-Boy's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Monroe, Mich. (1927)|
|Market Cap||$752.6 million|
|Trailing-12-Month Revenue||$1.2 billion|
|Management||CEO Kurt Darrow (since 2003)|
CFO Louis Riccio (since 2006)
|Return on Equity (average, past 3 years)||11%|
|Cash/Debt||$148.1 million / $29.8 million|
|Competitors||Ethan Allen Interiors|
Furniture Brands International
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 55% of the 278 members who have rated La-Z-Boy believe the stock will underperform the S&P 500 going forward.
They are a poster child for revamping, getting costs under control, managing advertising, and managing inventory. There is little not to like here from a retail perspective, but overall there is little upside here either. La-Z-Boy continues to surprise analysts, though the bar is fairly low and store traffic increases and EPS beats slightly. ...
This is a nice little company, but again I don't see the upside and given the market conditions I think it's worth a retrace play. Even with improved earnings ... margins are still thin. Cash flow still relies on nearly perfect inventory management.
What do you think about La-Z-Boy, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.