Why Ethan Allen Interiors Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of home-furnishing company Ethan Allen Interiors (NYS: ETH) soared 11% today after receiving an analyst upgrade.
So what: Ethan Allen shares galloped out of the gate this morning following an upgrade from an analyst at Stifel Nicolaus to buy from hold. The upgrade comes just two days after Ethan Allen reported third-quarter results that beat Wall Street's estimates by $0.01 on an 8% growth in sales.
Now what: The home-remodeling sector is on fire, and this is more proof. Just today we saw Lumber Liquidators (NYS: LL) rallying on stronger-than-expected earnings, while Home Depot (NYS: HD) recently ascended to a new 52-week high. The prevailing trend is the same at all three companies: Homeowners are choosing to remodel as opposed to moving or buying new homes. I wouldn't be surprised if Ethan Allen continues to be strong over the next year or two.
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At the time this article was published Fool contributorSean Williamshas no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool owns shares of Lumber Liquidators.Motley Fool newsletter serviceshave recommended buying shares of Home Depot and Lumber Liquidators. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.