Back to top

Bear of the Day

Leggett & Platt, Inc.'s (LEG) increased operating expenses coupled with higher cost inflation battered the third-quarter 2011 results. The company reported a flat year-over-year earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.36. Consequently, anticipating lower market growth expectation, the company has lowered its sales guidance for fiscal 2011 from the range of $3.5 $3.7 billion to $3.6 billion.

On the back of promising sales, Leggett also lowered and narrowed its forecasted 2011 EPS in the range of $1.15-$1.20 per share from $1.25-$1.40 per share. Moreover, intense competition from global and regional players, volatility in raw material prices and exposure to adverse foreign currency translations may undermine the company's growth prospects and profitability.

Our long-term Underperform recommendation on the stock indicates that it would perform below the broader market. Our target price of $20.00, 16.8x 2011 EPS, reflects this view.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.34 +4.58%
ERBA DIAGNO… ERB 2.89 +3.58%
MALLINCKROD… MNK 71.98 +3.55%
CENTURY ALU… CENX 22.32 +3.53%
GTT COMMUNI… GTT 12.03 +3.26%