Boosted by the recent rebound in the U.S. housing market,
Leggett & Platt, Inc
) hit a new 52-week high of $34.07 on Friday, Apr 12, before
closing at $33.79. This Zacks Rank #3 (Hold) manufacturer of
diversified engineered products and components beat its previous
52-week high of $34.00 and generated a year-to-date return of
Average volume of shares traded over the last 3 months came in
at approximately 1,236K. Currently, the stock which has a market
cap of $4.82 billion trades at a forward P/E of 20.8x,
significantly higher than the peer group average of 14.8x.
We believe that Leggett's well-diversified customer base and
solid research and development (R&D) capabilities offer it a
competitive edge while strengthening its pricing power in the
market. Moreover, the Mo.-based manufacturer of components for
residential and office furniture is continually enhancing its
core business operations while improving its financial
In addition, Leggett is constantly taking strategic actions to
add new products to its portfolio as per the consumers' changing
preferences while simultaneously divesting low-performing
The company also boasts an impressive record of beating the
quarterly earnings expectations and a favorable outlook.
With respect to earnings surprise, Leggett has beaten the
Zacks Consensus Estimate 4 times in the last 5 quarters with an
average surprise of 7.1%. In the fourth-quarter of 2012, the
company's earnings beat the Zacks Consensus Estimate by
The company's earnings of 32 cents per share jumped
approximately 45.0% from the year-ago quarter's earnings of 22
cents and beat the Zacks Consensus Estimate of 29 cents. The
increased bottom line was aided by the lower cost of goods sold
and effective cost management.
Buoyed by better-than-expected results, Leggett projects
full-year 2013 earnings per share between $1.50 and $1.75,
representing a significant rise from earnings per share of $1.46
reported in 2012. Net sales are anticipated to be in the range of
$3.75-$3.95 billion, reflecting growth of 1% to 6%.
Besides Leggett, companies such as
Home Depot Inc
The Walt Disney Company
Rite Aid Corp
) achieved new 52-week highs of $73.66, $60.73 and $2.33,
respectively, on Friday.
DISNEY WALT (DIS): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
LEGGETT & PLATT (LEG): Free Stock Analysis
RITE AID CORP (RAD): Free Stock Analysis
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