6. La-Z-Boy Inc (NYSE:LZB)
Market Cap: $1.31 billion
Dividend Yield: 3.03%
Forward P/E: 10.73%
Analysts upside: 39.32%
Number of Hedge Fund Holders: 21
La-Z-Boy Inc (NYSE:LZB) is among the best small-cap value stocks to buy according to analysts. La-Z-Boy Inc (NYSE:LZB) team led by the CEO Melinda Whittington presented at the 47th Annual Raymond James Institutional Investor Conference on March 2. The team used the platform to highlight the company’s strategic shifts, growth opportunities, and industry challenges.
On strategy, the team outlined La-Z-Boy’s shift toward a consumer-first business model. As part of this shift, the company plans to expand its retail network to 450 stores across the US and Canada. La-Z-Boy last reported having a retail network of 375 stores, including 16 new locations opened in the past year. The company also acquired 15 retail locations in the Southeast region. La-Z-Boy says new stores break even in their first year and start contributing to earnings in the third year.
Notably, the shift to the consumer-first strategy comes as La-Z-Boy makes more of its sales through the direct-to-consumer (DTC) channels. The company says DTC sales now make up 50% of its revenue, up from 25% a decade ago.
Looking ahead, La-Z-Boy aims to grow its sales at twice the market rate. Moreover, the company targets double-digit operating margins. The company says brand revitalization and distribution transformation will help it improve profitability and market share.
For its fiscal Q3 2026, which ended in January, La-Z-Boy posted adjusted EPS of $0.61, which exceeded the anticipated $0.59. Revenue increased 4% YoY to $542 million and surpassed the consensus forecast of $535.47 million. La-Z-Boy closed the quarter with $306.1 million in cash.
For fiscal Q2, the company guided revenue in the band of $560 million to 580 million. Analysts projected revenue of $590.2 million for that quarter. According to La-Z-Boy’s management, this guidance reflects a cautious view on macroeconomics.
La-Z-Boy Inc (NYSE:LZB) is an American furniture manufacturer headquartered in Monroe, Michigan. It makes a variety of home furniture, including sofas, upholstered recliners, stationary chairs, and lift chairs. The company operates through wholesale and retail channels and sells its products in the US and Canada.
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