La-Z-Boy: Time To Spend Some Cash – La-Z-Boy Incorporated (NYSE:LZB)

La-Z-Boy (NYSE:LZB) is currently operating in an industry that has lagged behind the growing economy. The company seemingly benefits from both ends of the business cycle: peak and contraction. The company benefits from new home sales through outfitting new homes with decor. Home sales are typically strong during the peak of the business cycle, which this company benefits from. LA-Z-Boy can also be seen as defensive because demand for home furniture is typically seen as a necessity and thus is very inelastic. This is why it may perform well during a contraction.

August Price Shocks

Looking at the technicals of the company over the past year, a point in August really jumps out. August 22nd saw the stock price fall from $31.25 to $24.95 – this represents a huge 25.25% decrease in price. This was due to margins shrinking in the upholstery segment. This news was also on the back of a change in director announcement just 8 days prior, which caused a huge near-5% drop. The drop 8 days…

Read more here

What do you think?

0 points
Upvote Downvote

Total votes: 0

Upvotes: 0

Upvotes percentage: 0.000000%

Downvotes: 0

Downvotes percentage: 0.000000%