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

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Lumber Liquidators Holdings (LL - Free Report) closed the most recent trading day at $18.94, moving -0.42% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%.

Prior to today's trading, shares of the hardwood floors retailer had lost 13.23% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 3% in that time.

Investors will be hoping for strength from LL as it approaches its next earnings release. In that report, analysts expect LL to post earnings of $0.32 per share. This would mark year-over-year growth of 220%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $301.83 million, up 31.07% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for LL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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

Digging into valuation, LL currently has a Forward P/E ratio of 14.02. This represents a discount compared to its industry's average Forward P/E of 15.29.

We can also see that LL currently has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LL's industry had an average PEG ratio of 1.31 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.

To follow LL in the coming trading sessions, be sure to utilize Zacks.com.


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