LZB - La-Z-Boy: Long Live The Value Stock With Earnings Growth
2024-02-14 03:24:44 ET
Summary
- La-Z-Boy Incorporated is an undervalued stock with a consistent history of earnings growth and a strong balance sheet.
- The company aims to achieve sales growth and double-digit operating margins through its Century Vision plan, which includes expansion and modernizing its marketing.
- LZB is expanding in part by increasing its company-owned store count, both by opening new locations and buying existing ones.
The most recent addition to my portfolio surprised me a bit when I dug into it, because when it popped up on my value stock screener, I didn't expect La-Z-Boy Incorporated ( LZB ) to be a company with a long-term plan for future growth. I expected it to be a value stock at a good price, with a conservatively run business with a strong balance sheet, and an ability to bounce back when the macroeconomic headwinds turn.
As it turns out, it's that and more, with a new marketing plan centered around " Long Live the Lazy ." Turns out, the first half of that adequately describes the company's earnings growth as well.
Investment Thesis
La-Z-Boy is undervalued based on a strong balance sheet, no debt, an impressive track record of earnings growth, and a plan to deliver more growth in the future. Over the last decade of full-year results, LZB has grown its earnings per share at a compound annual rate of 15.14%....
La-Z-Boy: Long Live The Value Stock With Earnings Growth