La-Z-Boy (LZB) Moves 5.7% Higher: Will This Strength Last?
La-Z-Boy Incorporated LZB shares soared 5.7% in the last trading session to close at $36.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.4% loss over the past four weeks.
Shares of La-Z-Boy rallied after another furniture seller Bassett Furniture Industries, Inc. reported better-than-expected fourth quarter-2021 results. Despite ongoing supply chain complications, consolidated sales grew 9.7% year over year in the quarter with double-digit sales growth in Wholesale and Logistical Services units.
This furniture company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +24.3%. Revenues are expected to be $563.7 million, up 19.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For La-Z-Boy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LZB going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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