Leggett Story

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LEG -- USA Stock  

USD 42.90  1.57  3.53%

Macroaxis News
By Vlad Skutelnik  
Macroaxis Story
It looks as if Leggett Platt will continue to recover much faster as its share price surged up 0.99% today. This firm current daily volatility is 1.99 percent, with a beta of -0.76 and an alpha of 0.07 over DOW. As many of us are excited about consumer goods, it is fair to digest Leggett Platt Incorporated. Why are we still confident in our projection for a recovery.
Published over two weeks ago
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How risky is Leggett Platt Incorporated after the latest volatility surge?
Leggett Platt Incorporated has roughly 245 M in cash with 635.2 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.85. Leggett Platt Incorp trade recommendations module can be used to check and cross-verify current advice provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time.
Investing in Leggett Platt, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Leggett Platt along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Leggett Platt's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Leggett Platt in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Leggett Platt. Your research has to be compared to or analyzed against Leggett Platt's peers to derive any actionable benefits. When done correctly, Leggett Platt's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Leggett Platt.

How important is Leggett Platt's Liquidity

Leggett Platt financial leverage refers to using borrowed capital as a funding source to finance Leggett Platt ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Leggett Platt financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Leggett Platt's total debt and its cash.

How Leggett utilizes its cash?

To perform a cash flow analysis of Leggett Platt, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Leggett Platt is receiving and how much cash it distributes out in a given period. The Leggett Platt cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Leggett Platt Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 768.2 Million

Leggett Platt Correlation with Peers

Investors in Leggett can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Leggett Platt. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Leggett Platt and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Leggett is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Leggett for more details

What is driving Leggett Platt Investor Appetite?

We consider Leggett Platt very steady. Leggett Platt Incorp has Sharpe Ratio of 0.0331, which conveys that the firm had 0.0331% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Leggett Platt, which you can use to evaluate future volatility of the firm. Please verify Leggett Platt Incorporated Downside Deviation of 2.21, mean deviation of 1.69, and Risk Adjusted Performance of 0.0079 to check out if the risk estimate we provide is consistent with the expected return of 0.0658%.
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Leggett is expecting lower volatility in March

Latest Sortino Ratio is up to -0.05. Price may dip again. Leggett Platt Incorporated currently demonstrates below-verage downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of 0.07. However, we do advice investors to further question Leggett Platt Incorporated expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Leggett Platt

Although other companies within the furnishings, fixtures & appliances industry are still a little expensive, even after the recent corrections, Leggett Platt may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current Leggett valuation and our trade advice on Leggett Platt is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Leggett Platt.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Leggett Platt. Please refer to our Terms of Use for any information regarding our disclosure principles.

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