La-Z-Boy Stock Will Provide Comfort for Passive Investors

LZB will report earnings on Tuesday, Aug. 17

Aug 12, 2021 at 11:41 AM
facebook twitter linkedin

La-Z-Boy Incorporated (NYSE:LZB) is one of the largest manufacturers and marketers of residential furniture. LZB's portfolio of wholesale brands includes England, La-Z-Boy, American Drew, Hammary, and Kincaid. La-Z-Boy's company-owned retail segment includes 159 of the 354 La-Z-Boy Furniture Galleries stores. LZB also owns Joybird, an e-commerce retailer and manufacturer of upholstered furniture.

La-Z-Boy stock is up 12% year-over-year, with its second-quarter selloff finding its legs near the $32.50 level in late June. Since then, LZB has been in rally mode, though its been contending with the 320-day moving average during the past couple sessions. The equity has managed to find support at the 10-day moving average one more, though it's still looking at a year-to-date deficit of roughly 10.5%. The furniture company also offers shareholders a forward dividend of $0.60 and a dividend yield 1.67%.

lzb aug 12

On August 3, La-Z-Boy announced that its first quarter of fiscal 2022 financial results will be released after market closes on Tuesday, Aug. 17. La-Z-Boy will also hold its quarterly investor conference call the following day, Wednesday, Aug. 18.

At the earnings confessional over the past year, La-Z-Boy has outperformed Wall Street's earnings expectations on all four of the most recent quarterly reports. For Q1 of fiscal 2021, LZB beat estimates by a margin of $0.31, reporting an earnings per share (EPS) of $0.18. For Q2 of fiscal 2021, La-Z-Boy's EPS increased to $0.82 and beat expectations by a margin of $0.32. For Q3 of fiscal 2021, earnings dropped to $0.74 per share but the furniture brand still beat estimates by a margin of $0.04. For Q4 of 2021, La-Z-Boy reported an EPS of $0.87 and beat expectations by a margin of $0.13. LZB is expected to report an EPS of $0.57 for Q1 of fiscal 2022 on Tuesday.

Fundamentally, La-Z-Boy stock has a price-earnings ratio of 15.66, which is a fair valuation given LZB's growth rate. The furniture company has grown revenues by 9.5% and net income by 32.3% since fiscal 2018. In addition, La-Z-Boy has a solid balance sheet with $391.21 million in cash and $362.64 million in total debt. Overall, LZB will likely yield minimal returns in the long-term, but the stock does offer a high level of security for passive investors looking for safe opportunities.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners