La-Z-Boy offers a 2.1% forward dividend yield and currently trades at about 10 forward P/E, .74 forward P/S, and a fantastic 5.6 P/ FCF . The low price multiples on this wonderful cash cow are well below the stock's five-year median. I estimate a whopping 38% upside to the median multiple of the last five years!
If La-Z-Boy's trading at a discount , it's not for lack of growth. We're talking 4% growth, 4% dividend growth, 1.7% sales growth, and 8% free cash flow growth, on average, since 2017. In addition to paying dividends, La-Z-Boy has also consistently bought back shares. Of the value stocks I follow, La-Z-Boy is in the 10th cheapest on a price ratio basis (trailing and forward P/E, P/S, P/D, P/ FCF ) and the 6th cheapest on a price-to-growth ratio basis (PEG, PSG , PDG , PFCFG).
La-Z-Boy has been innovating lately. You get an average of 4.5 new patents per year per billion dollars of market cap, making this a relatively cheap technology play. (Did I just call a furniture company a technology play? Yes, I did.) S&P Global gives La-Z-Boy an average fundamentals score of 88.25/100. It scores middle-of-the-road on ESG . I rate the outlook a 5/6, with projected future growth and mostly positive recent forecast revisions.
The average analyst score on La-Z-Boy is 6.4/10, putting it in but not strongly territory. However, options traders are highly on the stock, with open interest sitting at 0.15. That's the most open interest of any stock I follow. Options trading is quite as well.
News on La-Z-Boy has been mostly positive. Last quarter's and sales handily beat estimates, and La-Z-Boy is upgrading its Neosho, MO manufacturing plant. The stock's been beaten down due to supply chain troubles and materials costs, but with the stock near strong support and open interest so positive, I think the selloff may have exhausted itself.
In technical terms, we've got upside to at least the 20-day at $35.04 per share, with strong support from the 200-week at 32.85. That's a net-positive reward-minus-risk of 3.9%.
Well under the 200EMA, Death Cross, RSI trending down.
I won't open a put, because of that obvious resistance level.
.. but the main trend is down, into a triangle continuation pattern. That's not a great place to go long.
You can be sure I'll be watching this one to heckle you more, or lament my mistakes.. :D
More specifically I'm interested here because I'm noticing that companies that aren't worthy of the S&P 500 are struggling, I'm interested to see if this can catch a good bounce, or if it's going to get caught up in a broader decline.
Perhaps yesterday's fed meeting cleared the way to success here. Silly me passed on my SPY calls this week.