La-Z-Boy Stock Forum

The diminishing returns on increasing amounts of capital employed by La-Z-Boy is a concern. If these trends persist, there might be better investment opportunities elsewhere.

The company's Q3 results missed Wall Street's estimates, indicating weak business quality. With an annualized revenue growth rate of 3.7% over the last five years and declines of 3.2% over the last two years, its cash profitability is mediocre and expected to fall further.

La-Z-Boy is undervalued, presenting a potential opportunity to accumulate more holdings. The current share price doesn't fully reflect the company's future outlook, suggesting it's not too late to buy LZB. Consider other factors like management's track record before investing.

La-Z-Boy's lower P/E ratio is due to its weaker forecast growth. Investors' hesitance about earnings improvement is reflected in the low P/E ratio, suggesting limited share price growth in the near future.