Published on 18 Dec 2023 on Simply Wall St. via Yahoo Finance
With a price-to-earnings (or "P/E") ratio of 12.8x La-Z-Boy Incorporated (NYSE:LZB) may be sending bullish signals at the moment, given that almost half of all companies in the United States have P/E ratios greater than 17x and even P/E's higher than 33x are not unusual. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.
La-Z-Boy has been struggling lately as its earnings have declined faster than most other companies. The P/E is probably low because investors think this poor earnings performance isn't going to improve at all. You'd much rather the company wasn't bleeding earnings if you still believe in the business. If not, then existing shareholders will probably struggle to get excited about the future direction of the share price.
View our latest analysis for La-Z-Boy