#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, Incorporated designs, manufactures, and sells engineered components and products in the United States, Europe, China, Canada, Mexico, and internationally. It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flooring & Textile Products. The company offers steel rods, drawn wires, specialty foam chemicals and additives, innersprings, specialty foam for use in bedding and furniture, private label finished mattresses, ready-to-assemble mattress foundations, static foundations, and adjustable beds, as well as machines for producing innersprings; industrial sewing and quilting machines; mattress-packaging; and glue-drying equipment for various industrial users of steel rod and wire, manufacturers of finished bedding, bedding brands and mattress retailers, E-commerce retailers, big box retailers, department stores, and home improvement centers.
Read More - Current Price
- $12.16
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $12.67 (4.2% Upside)
