La-Z-Boy Shares Plunged: What You Need to Know (LZB)

La-Z-Boy Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of La-Z-Boy (NYSE: LZB ) slept in an awkward position on the couch last night and woke up with a stiff neck, falling 10% today.

So what: Earnings came out last night, but they certainly didn’t warrant the move we saw today. Adjusting for one-time items, earnings per share totaled $0.24, on revenue of $338.9 million. Analysts only expected earnings of $0.19 and revenue of $324 million, so what in the world is going on?

Now what: The move was really based on a Wall Street Strategies downgrade of the stock, coupled with expectations of cautious consumer spending. I think the market is overreacting today, projecting far too much weakness after a solid earnings beat. La-Z-Boy is a better value than both Ethan Allen (NYSE: ETH ) and Furniture Brands (NYSE: FBN ) right now, and I think the market will eventually reward shareholders who can wait out this downgrade slump.

Interested in more info on La-Z-Boy? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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