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Lumber Liquidators Holdings (LL) Outpaces Stock Market Gains: What You Should Know

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Lumber Liquidators Holdings (LL) closed the most recent trading day at $18.97, moving +0.85% from the previous trading session. This change outpaced the S&P 500's 0.82% gain on the day.

Coming into today, shares of the hardwood floors retailer had lost 9.17% in the past month. In that same time, the Retail-Wholesale sector gained 0.05%, while the S&P 500 gained 3.89%.

Wall Street will be looking for positivity from LL as it approaches its next earnings report date. In that report, analysts expect LL to post earnings of $0.32 per share. This would mark year-over-year growth of 220%. Meanwhile, our latest consensus estimate is calling for revenue of $301.83 million, up 31.07% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.36 per share and revenue of $1.19 billion. These totals would mark changes of -40.35% and +8.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for LL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. LL is currently a Zacks Rank #3 (Hold).

Investors should also note LL's current valuation metrics, including its Forward P/E ratio of 13.86. Its industry sports an average Forward P/E of 14.17, so we one might conclude that LL is trading at a discount comparatively.

Investors should also note that LL has a PEG ratio of 0.62 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail was holding an average PEG ratio of 1.29 at yesterday's closing price.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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