Why Lumber Liquidators Stock Just Popped 16%
Shares of flooring products retailer Lumber Liquidators (NYSE: LL) are going through the roof in Tuesday trading, up 16.2% as of 1 p.m. EDT after the company's stock was upgraded by analysts at Loop Capital.
Loop upgraded Lumber Liquidators shares to "buy" with an $18 price target (from "hold" and an $11 target) today, reports TheFly.com, arguing that tariffs on imported goods have permitted Lumber Liquidators to sell product at strong prices, boosting gross profit margins. Loop believes that when Lumber Liquidators reports its second-quarter earnings three weeks from now, on August 5, profits will exceed expectations.
Moreover, while COVID-19 has weighed on many retailers' results, Loop believes that the pandemic could have a "positive impact" on the stock -- presumably from homebound consumers spending time and money on home improvements.
Source Fool.com
