#2 - Leggett & Platt (NYSE:LEG)
Leggett & Platt Inc. (NYSE: LEG) is closely tied to the home furnishings market. The company designs and manufactures engineered components and products for a variety of markets. However, the company relies heavily on home furnishing and automotive markets.
That's a key reason why LEG stock is down approximately 80% in the last three years. And recently, the company cut its dividend payment, removing it from the rank of dividend kings. The good news is that Leggett plans to use that freed-up capital to pay down debt and invest in growth.
But what the company really needs is improvement in the top line. And for that, it needs an improved housing market. As the June read on new home sales shows, that won't happen right away. But it also adds fuel to the argument for rate cuts, perhaps as early as September.
Short interest is up 62% in the 30 days ending July 24, 2024. That means LEG stock could have limited upside in the short term. It will take a strong stomach to hold the stock, but this could be a time to take a small position.
About Leggett & Platt
Leggett & Platt, Inc engages in the manufacture and distribution of furniture and engineered components and products among homes, offices, automobiles, and commercial aircraft. It operates through the following segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products.
More about Leggett & Platt- Current Price
- $8.69
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $12.00 (38.2% Upside)
