Leggett & Platt Incorporated (LEG) shares are trading at higher $41.73 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $44.00.
To add more color to this target, the company’s high over the last year is $55.42 and the low is $22.03. Over the last 52 weeks, LEG is down -18.65% while the S&P 500 is up 7.65%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LEG reported a profit of $146.3 million. Leggett & Platt Incorporated also saw revenues increase to $845.1 million. In addition, LEG has free cash flow of $79.5 million as of 06-2020. The company’s EBITDA came in at $104.7 million which compares well with its peers.
LEG booked profit margins of 5.30%, its Return on Equity (ROE) is 18.00%, and its Return on Assets is 4.70%. All told, it is clear that, LEG needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LEG has a short ratio of 3.63 and outstanding shares of 135.70M.
LEG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.18 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.67. Leggett & Platt Incorporated LEG also noted assets of $4.58 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LEG has historically followed its peers on positive news.
All told, Leggett & Platt Incorporated LEG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LEG represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Leggett & Platt Incorporated LEG is now commanding a market cap of 5.49B and a float of 130.79M. LEG is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LEG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in LEG, either long or short, and we have not been compensated for this article.