La-Z-Boy Drops 0.66% Despite Fair Valuation

La-Z-Boy (LZB) shares experienced a slight decline of 0.66% today, reaching their highest level since March 2025 with an intraday gain of 0.33%.

The strategy of buying LZB shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 3.64%. While the strategy captured some upside during bullish periods, it also suffered losses during downturns. The recent high before purchase and the short holding period helped mitigate some risks but did not completely protect against market fluctuations. Investors should consider their risk tolerance and market outlook before adopting this strategy.

La-Z-Boy's stock price has been on a downward trend, decreasing by 0.95% on May 7, 2025, and continuing to decline for three consecutive days. This recent performance has contributed to the overall bearish sentiment surrounding the stock.

Despite the recent decline, La-Z-Boy's stock is currently trading within a fairly valued range. As of May 8, 2025, the stock's fair value estimation is $83.22, compared to its current trading price. This valuation suggests that the stock may be undervalued, providing potential opportunities for investors.

Yahoo Finance has recently lowered the target price for La-Z-Boy to $37.00, indicating a bearish outlook on the stock. This adjustment reflects the market's pessimistic view on the company's future performance and potential growth prospects.