Wednesday, April 28, 2010

Leggett Platt, Inc -- LEG

Financial Tides likes Leggett & Platt, Inc. ( LEG ) one of the leading manufacturers of engineered products serving several major markets. Sales and production are focused on residential furnishings, commercial furnishings, aluminum products, industrial materials, and specialized products. The company has facilities throughout North America and in numerous international locations.

The company cut costs, exited unprofitable lines of business and repurchased stock to improve it's financial strength. With a very strong financial position, the company is expected to continue increasing it's dividend as it has done for over 39 years.

Technical price momentum -- The stock has a buy signal on all 13 of Barchart's technical indicators. The stock hit new highs in 12 of the last 20 trading sessions and also in 4 of the last 5 sessions. In the last 30 days the stock has appreciated 12.96%. It trades around 24.39 with a 50 day moving average of 21.29.

Wall Street buy recommendations - Analysts have 3 buy and 3 hold recommendations released and expect increased sales and earnings. Sales are estimated to increase 9.90% this year followed by 5.9o% next year. Earnings per share predictions are terrific with expected increases in EPS of 67.70% this year , 24.20% next year and maintain a 5 year annual compounded EPS growth rate of over 15.00% a year.

Positive investor sentiment -- Over on Motley Fool the CAPS members think this stock will beat the market by a vote of 119 to 42. The All Stars also vote positively by a vote of 46 to 11.

If you're looking for a financially strong balance sheet and income statement, recent price momentum, a Wall Street following plus positive investor sentiment look at Legget Platt Inc (LEG).

Jim Van Meerten is a investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure : No position in LEG at the time of publication

No comments:

Post a Comment