Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, furniture maker La-Z-Boy (NYSE:LZB) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at La-Z-Boy's business and see what CAPS investors are saying about the stock right now.

La-Z-Boy facts

Headquarters (Founded)

Monroe, Mich. (1927)

Market Cap

$210.25 Million


Home Furnishings

Trailing-12-Month Revenue

$1.23 Billion


President/CEO Kurt Darrow (Since 2003)

CFO Louis Riccio Jr. (Since 2006)

Return on Equity (Average, Past Five Years and TTM)

(4.5%) and (32.1%)

3-Month Return



Wal-Mart (NYSE:WMT)

Home Depot (NYSE:HD)


CAPS Members Bearish on LZB Also Bearish on

Centex (NYSE:CTX)

CAPS Members Bullish on LZB Also Bullish on

Citigroup (NYSE:C)

Bank of America (NYSE:BAC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 106 of the 188 members who have rated La-Z-Boy -- some 56% -- believe the stock will underperform the S&P 500 going forward. These bears include wolfhounds and All-Star TSIF, who is ranked in the top 1% of our community.

Just last week, wolfhounds tried to put La-Z-Boy's turnaround hopes to rest:

Cutting expenses 15%, cutting dealer network, cutting whatever they can to get cash. That they did. Unfortunately, the consumer cut themselves out too. Big time. Without sales pickup very soon, [La-Z-Boy] will not survive.

In a pitch from one day later, TSIF also predicted a reclining price:

Returning to profitability spurred it to unrealistic highs. … Inventory is still high, accounts receivable may also have some clients who are bankrupt. Returning to almost half your market cap when you have a fraction of your earnings is a bit much after two quarters of record losses. Granted La-Z-Boy's cash/debt position is better than most in this recession, especially in furniture. La-Z-Boy's chairs are priced at a point that consumers can add them without a huge dent to their cash flow, but I'm skeptical with all the foreclosures and unemployment still mounting that a La-Z-Boy chair is on many peoples radar, especially in the middle of summer. Maybe I'm wrong, but I think the musical chair share price will soon leave someone without a seat.

What do you think about La-Z-Boy, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. La-Z-Boy is a Motley Fool Income Investor pick. Wal-Mart, Home Depot, and Costco are Inside Value recommendations. Costco is also a Stock Advisor selection, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.