The Zacks Furniture industry is laying the groundwork for long-term growth through innovation, digital expansion and product evolution. Companies are increasingly leveraging e-commerce, AI-driven personalization, and augmented reality (AR)/virtual reality (VR) tools to enhance customer engagement, while demand for multifunctional furniture—especially from millennials and Gen Z—is supporting new product development. Strategic acquisitions, partnerships and selective opportunities in the public sector further ...

Investors might want to bet on La-Z-Boy (LZB) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.Analysts' growing optimism on the earnings prospects of this furniture company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate ...

Core Insights - La-Z-Boy Incorporated has appointed William (Bill) Boor to its Board of Directors, effective December 8, 2025, enhancing its leadership team as it pursues its Century Vision growth strategy [1][2]. Company Overview - La-Z-Boy Incorporated is a leading vertically integrated retailer and manufacturer of high-quality, custom furniture, with a legacy of nearly 100 years in the industry [5]. - The company operates a retail network of 370 La-Z-Boy stores, including 222 company-owned locations, and has a strong digital presence through its website [6]. - Approximately 90% of La-Z-Boy's products are manufactured in North America, showcasing its commitment to local production [6]. Leadership and Strategy - Bill Boor, the new board member, is the President and CEO of Cavco Industries, Inc., and has a proven track record in driving transformational growth and strong governance [2]. - Under Boor's leadership at Cavco, the company has focused on strategic brand acquisitions, organizational restructuring, and enhanced digital marketing investments [2]. - Boor's extensive experience in supply chain oversight and corporate culture transformation is expected to provide valuable insights to La-Z-Boy's Board [2][3]. Market Position - La-Z-Boy was recognized as No. 1 in the furniture category on Newsweek's 2025 list of America's Best Retailers, indicating its strong market position and brand reputation [6].

Core Viewpoint - La-Z-Boy is recognized as a fundamentally strong consumer company, showing resilience in a challenging retail environment and is currently rated as a Zacks Rank 1 (Strong Buy) [1][2]. Financial Performance - Analysts have increased earnings estimates for La-Z-Boy, with the current year’s estimate rising from $2.86 to $2.95 and next year’s from $2.75 to $2.93, indicating confidence in the company's ability to improve margins [3]. - La-Z-Boy trades at a price-to-earnings ratio of 12.79x, while consistently beating earnings expectations and expanding gross margins [4]. Market Position - The company has effectively managed its supply chain and focused on higher-margin custom orders, maintaining demand for upholstery and custom furniture despite broader market concerns [2][3]. - La-Z-Boy benefits from a strong balance sheet and a loyal customer base that spans generations, positioning it well for future growth as consumer confidence improves [5].

Core Viewpoint - La-Z-Boy (LZB) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - La-Z-Boy's earnings estimates have been revised upward, with a 3.3% increase in the Zacks Consensus Estimate over the past three months, projecting earnings of $2.95 per share for the fiscal year ending April 2026, showing no year-over-year change [8]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - La-Z-Boy's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: La-Z-Boy (LZB) Analysis - La-Z-Boy (LZB) has shown a four-week price change of 15.3%, indicating strong investor interest [3] - LZB has gained 2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.26, suggesting it moves 26% higher than the market in either direction [4] - LZB holds a Momentum Score of B, indicating a favorable entry point for investors [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - LZB is trading at a Price-to-Sales ratio of 0.74, indicating it is reasonably valued at 74 cents for each dollar of sales [6] Group 3: Investment Opportunities - LZB is positioned for further growth, and there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Group 1 - The retail stocks within The Consumer Discretionary Select Sector SPDR Fund ETF (XLY) have experienced significant declines due to tariff fears, leading to a bearish outlook in the market [1] - Despite the bearish sentiment, there are opportunities for undervalued growth companies that can justify a premium based on developments not yet reflected in their stock prices [1] - The experience from institutions like Goldman Sachs and Citigroup has contributed to the ability to identify special opportunities in long/short equity portfolios [1]

Core Insights - The retail stocks within The Consumer Discretionary Select Sector SPDR Fund ETF (XLY) have experienced significant declines due to tariff fears, suggesting a bearish outlook for the sector [1] Group 1: Market Conditions - The current environment has led to a bear case for retail stocks, which may be justified given the prevailing tariff concerns [1] Group 2: Analyst Background - The analyst has extensive experience from institutions like Goldman Sachs and Citigroup, focusing on deep dives into companies and identifying special opportunities in long/short equity portfolios [1] - The analyst emphasizes a focus on undervalued growth companies that can command a premium based on developments not yet reflected in stock prices [1]

Core Viewpoint - Lazy Boy's shares surged by 21% following an earnings report that exceeded estimates for both revenue and earnings, indicating positive market sentiment towards the company's performance and strategic direction [2][3][6]. Financial Performance - The company reported adjusted earnings of 71 cents per share, surpassing the estimate of 54 cents by 17 cents, although this figure remained flat compared to the same quarter last year [3][4]. - Topline sales for the interlink business reached $522 million, slightly above the estimated $517 million, reflecting a less than 1% increase [4][5]. - Guidance for the next quarter was raised to a range of $525 million to $545 million, suggesting a projected growth of 1% to 4% in topline sales [5]. Strategic Moves - Lazy Boy is focusing on upscale market positioning by expanding its retail footprint through acquisitions of smaller retailers and opening new galleries [2][3]. - The company is exiting some domestic upholstery businesses and closing a UK manufacturing plant to raise cash, which will be used to pay an additional dividend, marking the fifth consecutive quarter of dividends [5][6]. Market Trends - The company is experiencing challenges with net income margins, which are currently around 3% to 4%, but is optimistic about improving operating metrics with an expected increase in EBITDA to over 7.1% of sales [8][9]. - The shift towards higher price point products is seen as a strategy to attract a more affluent customer base, while potentially sidelining middle-income buyers [16][17].

Core Insights - Proactive provides fast, accessible, and informative business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, mining, oil and gas, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]