LZB - Megaphone StructureA megaphone structure on the Weekly chart for LZB. I expect a breakout upwards, possibly even breaking the megaphone. Bullish.
LZB trade ideas
La-Z-Boy Inc bearishLa-Z-Boy Inc. is an American furniture manufacturer based in Monroe, Michigan, USA, that makes home furniture, including upholstered recliners, sofas, stationary chairs, lift chairs and sleeper sofas.
La-Z-BoyCompany Description:
La-Z-Boy Incorporated is one of the world's leading residential furniture producers, marketing furniture for every room of the home. The La-Z-Boy Upholstery segment companies are La-Z-Boy and England. The Casegoods segment consists of three brands: American Drew, Hammary and Kincaid. The company-owned Retail segment of the La-Z-Boy Furniture Galleries stores. The corporation's branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes the stand-alone La-Z-Boy Furniture Galleries stores and the independent Comfort Studio' locations, in addition to in-store gallery programs for Kincaid and England.
Analysis:
When taking a look at the 4 hour chart, I see a few indicators that gives me bullish sentiment:
1. Candles near strong support.
2. RSI starting momentum upwards and coming off of an oversold area?
3. Mac D on its down side. Flashing black and may be losing its recent downtrend momentum.
4. High before the most recent previous high was broken.
5. New low was made. However, new accumulation stage forming?
6. 50/200 EMA Cross approaching with 2nd Orange Renko forming?
Looking for a price target of $40! Not Financial Advice. Always Do Research Before Decision!
Deep Value and Bullish Sentiment in La-Z-BoyMy largest single position right now is La-Z-Boy, and the consolidating price action the last few days is telling me the time may be right.
Deep Value
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% earnings 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 earnings outlook a 5/6, with projected future growth and mostly positive recent forecast revisions.
Bullish Sentiment
The average analyst score on La-Z-Boy is 6.4/10, putting it in bullish but not strongly bullish territory. However, options traders are highly bullish on the stock, with open interest sitting at 0.15. That's the most bullish open interest of any stock I follow. Options trading volume is quite bullish as well.
News on La-Z-Boy has been mostly positive. Last quarter's earnings 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.
Support-Resistance
In technical terms, we've got upside to at least the 20-day exponential moving average 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%.
LZB set to break out of ascending triangle formationThis looks like a gorgeous ascending triangle example. It has bounced off each of the trendlines 6 times so it is set to break through the top. Volume also seems to pick up on the upswings.
I like this one.
$LZB La-Z-Boy Earninsg Trade
Potential long above $33
Upside target $35.70
Bullish downtrend broken
Golden cross complete
LZB, big SHORT possible from rising wedgeStock Practice #3
Multiple confluences of bear trend -
1. Creating a picture perfect Elliot wave pattern called Impulse Wave Ending Diagonal.
2. Could also be called a rising wedge that will produce a bear trend.
3. Bear divergences occurring in multiple time frames.
4. ATR at mutl-year highs, could help with the breakdown of the rising wedge pattern.
Wait for confirmations for trend-line break.
LZB Day Trade Today LZB Showing weakness after earnings missed targets. It faded hard after hours close to 25.50 pivot I have drawn. Right now its between pivots. The market hasn't opened yet to show the pre-market price action. I would be more interested in shorting it as the catalyst is negative and it has room to fade until 23.15 then 19.66. I would take a position if it gives me a pullback once it gets below 25.50 using my 5 min chart and 1 min chart for entry. If it doesn't break the 25.50 pivot and stays above I would stay away from it. No long position for me as the signals are mainly bearish.
Earnings revision on June 5th has set the scene in La-z-BoyFrom a technical perspective the chart looks bearish and the statement from the company on June 5th have just added extra fuel to the fire, it is difficult to see how this can be anything but a short.
Pre Earnings Revision
On June 5th shares of LZB fell in the extended session Wednesday after the furniture company forecast full-year results that fell short of Wall Street estimates. The company said it expects adjusted earnings of $2.13 to $2.15 a share on revenue of $1.75 billion for the year. Analysts surveyed by FactSet had forecast earnings of $2.21 a share on revenue of $1.76 billion. "For the full year, all segments delivered sales increases," said Kurt Darrow, La-Z-Boy chairman and chief executive, in a statement. "However, in the fourth quarter sales declined versus the prior-year quarter in our wholesale Upholstery and Casegoods segments, consistent with a slow start to the calendar year across the North American retail home furnishings landscape."
COMPANY PROFILE
La-Z-Boy, Inc. is a manufacturer, marketer, importer, distributor and retailer of upholstery products. It also imports, distribute and retail accessories and casegoods furniture products. The company operates through its segments: Upholstery, Casegoods and Retail. The Upholstery segment manufactures or imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas. The Casegoods segment includes bedroom sets, dining room sets, entertainment centers and occasional pieces. The Retail segment primarily sells upholstered furniture, in addition to some casegoods and other accessories, to the end consumer through the retail network. La-Z-Boy was founded by Edward M. Knabusch and Edwin J. Shoemaker in 1941 and is headquartered in Monroe, MI.
