Why Lumber Liquidators Crashed

By Andrés Cardenal – Jul 11, 2014 at 2:10PM

NYSE: LL

LL Flooring Holdings, Inc.

Market Cap

$47M

Today's Change

(-3.80%) -$0.06

Current Price

$1.52

Price as of April 18, 2024, 4:00 p.m. ET

Lumber Liquidators crashed by a breathtaking 21.5% on Thursday. Why investors may want to closely monitor the company, as well as big industry players such as Home Depot and Lowe's in the coming months.

Lumber Liquidators (LL -3.80%) crashed by a breathtaking 21.5% on Thursday after the company announced disappointing financial performance for the second quarter, and reduced guidance for the rest of the year. Investors may want to closely monitor the company in the coming quarters, and performance from big home-improvement retailers such as Home Depot (HD 0.02%) and Lowe's (LOW -0.03%) can provide important information regarding the health of the industry in the medium term.

The slideshow below contains some ideas for investors willing to take a look into Lumber Liquidators in order to evaluate whether the recent crash represents a buying opportunity or whether it's better to stay away from the company at this stage.

Andrés Cardenal has no position in any stocks mentioned. The Motley Fool recommends Home Depot and Lumber Liquidators. The Motley Fool owns shares of Lumber Liquidators. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.