Lumber Liquidators Holdings, Inc. (LL): Today's Most Compelling Stock Buy
|SoTM Bull's Eye Report - Today's Most Compelling Buy |
Wednesday, June 13, 2013
At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.
|Lumber Liquidators Holdings Inc||LL||Home Improvement Retail||9.3||+55.74%||$76.41|
Why We Like The Stock:
Lumber Liquidators Holdings Inc (LL) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in a positively trending sub-industry. Like its counterparts The Home Depot (HD) and Lowes (LOW), LL's price action is generally tied to the housing recovery and consumer stocks, both of which have been leading the market rally for some time. LL is a little scary on a weekly basis. The stock is up +55.74% this year, and over 300% since the beginning of 2012. However, with the housing recovery keeping pace and a favorable short-term setup, LL looks like a great trade opportunity. The stock recently hit highs of $90 in mid-May, which is +8.75% higher than current prices. After pulling back through the first week of June, LL is back on the upswing, crossing above its short-term moving averages late last week. We like LL for a short-term trade back to $90, but would be weary of holding it for much longer.
|We Would Be Buyers: |
At the current price (~$82.75).
Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
|Company Profile: |
Lumber Liquidators Holdings, Inc. (Lumber Liquidators) is retailer of hardwood flooring, and hardwood flooring enhancements and accessories. The Company offers an assortment of wood flooring, which includes prefinished domestic and exotic hardwoods, engineered hardwoods, unfinished hardwoods, bamboo, cork and laminates, as well as resilient flooring. Its flooring enhancements and accessories include moldings, noise-reducing underlay and adhesives. Lumber Liquidators and Bellawood are it brands. Its hardwood flooring products are available in various widths and lengths. It offers approximately 350 different flooring product stock-keeping units. During the year ended December 31, 2011, the Company opened 40 stores. As of February 20, 2012, the Company operated 266 stores located in 46 states and Canada. During 2011, Lumber Liquidators opened its first stores in Canada. In September 2011, it acquired certain assets of Sequoia Floorings Inc. (Sequoia).
Note: Positions may be bought or sold while this publication is in circulation without notice.
Lumber Liquidators Holdings Inc - Last 3 Months
Lumber Liquidators Holdings Inc - Last 12 Months
Lumber Liquidators Holdings Inc - Last 5 Years
The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.
Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.