Bull’s Eye Report: Lumber Liquidators (LL)

Try LL for a short-term trade

   

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 LL Home Improvement Retail 9.3 +55.74% $76.41

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) in a positively trending sub-industry. Like its counterparts  Home Depot (HD) and Lowes (LOW), LL’s price action is generally tied to the housing recovery and consumer stocks, both of which have been leading the market rally for some time. LL is a little scary on a weekly basis. The stock is up +55.74% this year, and over 300% since the beginning of 2012. However, with the housing recovery keeping pace and a favorable short-term setup, LL looks like a great trade opportunity. The stock recently hit highs of $90 in mid-May, which is +8.75% higher than current prices. After pulling back through the first week of June, LL is back on the upswing, crossing above its short-term moving averages late last week. We like LL for a short-term trade back to $90, but would be wary of holding it for much longer.

We Would Be Buyers:

At the current price (~$82.75).

Company Profile:

Lumber Liquidators Holdings, Inc.  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. Its hardwood flooring products are available in various widths and lengths. It offers approximately 350 different flooring product stock-keeping units.

Stock Rating: 9.3

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

ll 1 Bulls Eye Report: Lumber Liquidators (LL)

Lumber Liquidators – Last 12 Months

ll 2 Bulls Eye Report: Lumber Liquidators (LL)

Lumber Liquidators – Last Five Years

ll 3 Bulls 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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