The Russell 2000 is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Looking back on home furnishings stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Lovesac (NASDAQ:LOVE) and its peers.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at La-Z-Boy (NYSE:LZB) and its peers.
Looking back on home furnishings stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Leggett & Platt (NYSE:LEG) and its peers.
Lovesac has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 12.9% to $24.77 per share while the index has gained 8.8%.
Shares of furniture company Lovesac (NASDAQ:LOVE)
fell 25.5% in the morning session after the company reported underwhelming third-quarter financial results, with revenue falling below Wall Street's expectations. In addition, its full-year EPS guidance missed significantly, and its EPS guidance for the next quarter fell short of Wall Street's estimates. Management added, "Near-term headwinds for our category clearly persisted through the pre-election period." Overall, this quarter could have been better.
Furniture company Lovesac (NASDAQ:LOVE) missed Wall Street’s revenue expectations in Q3 CY2024, with sales falling 2.7% year on year to $149.9 million. Its GAAP loss of $0.32 per share decreased from -$0.15 in the same quarter last year.
