La-Z-Boy Solid Small Sleeper

Written by GSCR Staff   
Thursday, 22 October 2015 06:59

Our tagline is appropriate when one considers the two major plays in football that happened last weekend and Monday night were from the usually boring punt formation.

Michigan State won on one of the least likely ways imaginable, and the Colts looked like a pee-wee team with their fake punt blunder. Sometimes the boring stuff can be exciting.

In this week’s Guide we featured a household name, Whirlpool (NYSE – WHR). Today’s stock is another ‘Rip Van Winkle’ household name. We featured La-Z-Boy, Inc. (NYSE – LZB - $27.95) right before New Year’s last year at $26.73. The stock is up a steady 4.5% since then. Below is the one year performance along with the ever important 50-day EMA technical indicator. The stock is trading above that metric.

LZB 1-Year Chart, 50-Day EMA

(Source: www.otcmarkets.com)

MM.10.21.15.LZB-1yr-50ema

La-Z-Boy needs no introduction. As the weather cools and football season heats up everyone gets reacquainted with its products. The forward P/E versus trailing P/E check holds here with the metrics at 16 and 20 respectively. Also the five year PEG is low 1. Additionally, the Company has beaten or exceeded EPS three out of the last four quarters. Another important technical metric, short float, checks in under 3%. Finally, the Company had $99 million in cash versus $1 million in debt as of the end of July.

Hitting revenue and EPS in the all important retail fiscal Q4, the holidays, should give the stock a pop in early 2016. Slow and steady wins the race here. LZB is a solid stock for a hold. As a bonus the Company offers a small dividend currently yielding 1.15%. We think the stock hits the $30 by the end of Q1 2016.

Have a great day!

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