Bull’s Eye Report: Lumber Liquidators (LL)

LL is showing potential for a short-term trade, though a tight stop is recommended

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Lumber Liquidators Holdings Inc LL Home Improvement Retail 9.8 +61.81% $81.88

Why We Like The Stock:

Lumber Liquidators Holdings (LL) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Home improvement retail stocks have been a major performer this year, as evidenced in charts like Home Depot (HD), Lowe’s (LOW), Rent-A-Center (RCII), and LL. Though LL is extended on a weekly basis, we like this stock for a short term trade. Overhead resistance is around $90, which is about 6.2% higher from current prices. The stock tends to blast higher on price breakouts, so should it pop higher than $90, holding becomes even more attractive. LL’s short-term moving averages are about to cross above the 50-day moving average, which is a positive indicator in the near-term. We’d be buyers of LL at current prices for a run back to $90, setting a fairly tight stop at the 5-day moving average ($81.88) to limit downside risk.

We Would Be Buyers:

At the current price (~$84.65).

Company Profile:

Lumber Liquidators Holdings, Inc. (Lumber Liquidators) is retailer of hardwood flooring, and hardwood flooring enhancements and accessories. The company offers an assortment of wood flooring, which includes prefinished domestic and exotic hardwoods, engineered hardwoods, unfinished hardwoods, bamboo, cork and laminates, as well as resilient flooring. Its flooring enhancements and accessories include moldings, noise-reducing underlay and adhesives. Lumber Liquidators and Bellawood are its brands.

Stock Rating: 9.8

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Lumber Liquidators – Last Three Months

LII 1 Bull's Eye Report: Lumber Liquidators (LL)

Lumber Liquidators – Last 12 Months

LII 2 Bull's Eye Report: Lumber Liquidators (LL)

Lumber Liquidators – Last Five Years

LII 3 Bull's Eye Report: Lumber Liquidators (LL)

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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice


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