Watsco and La-Z-Boy Improve Ratings Amid Investor Interest

A recent report reveals significant upgrades for several companies, highlighting Watsco and La-Z-Boy with improved ratings reflecting strong fundamentals. Investors may find new opportunities as ratings indicate enhanced stock evaluations.

Date: 04-10-2024

AI Rating: 7

The report identifies several companies that have experienced rating upgrades based on Peter Lynch's investment strategy, focusing on fundamental analysis and valuation metrics. The upgrades for Watsco Inc (WSO), La-Z-Boy Inc (LZB), and Korn Ferry (KFY) indicate potential positive sentiment among investors.

Watsco Inc (WSO) experienced a substantial rating increase from 0% to 74%. This change reflects improvements in the company's valuation and underlying fundamentals. However, it failed the P/E Growth ratio test while passing the Sales and P/E ratio, inventory to sales, EPS growth rate, and Total Debt/Equity ratio tests. Particularly notable is the EPS growth rate, indicating that Watsco has shown positive earnings per share growth.

In terms of rating, WSO could be viewed positively due to its enhanced overall score, despite some fails in critical areas. As such, the rating can be considered slightly positive, earning a tentative 7.

La-Z-Boy Inc (LZB) registered a remarkable rise in the rating from 0% to 91%, suggesting strong interest from investors. This significant improvement is backed by passing criteria in multiple areas, including inventory to sales, yield-adjusted P/E to growth ratio, and earnings per share. The passing of the earnings per share test is crucial as it is a direct indicator of company profitability.

With an overall score of 91%, La-Z-Boy's stock may attract considerable investor interest, meriting a strong rating of 8.

Korn Ferry (KFY) also saw an upgrade in its rating from 87% to 91%. It passed all critical tests such as the P/E growth ratio, sales to P/E ratio, EPS growth rate, and Total Debt/Equity ratio. The rating reflects a consistent business performance and solid value proposition, earning it a score of 8.

Tesco PLC (ADR) (TSCDY) showed only a slight improvement in rating from 72% to 74%. The stock failed the Total Debt/Equity ratio test while passing others, resulting in a more neutral outlook with a rating of 6. Meanwhile, Dai Nippon Printing Co Ltd (ADR) (DNPLY) showed a rating increase from 0% to 74%, indicating potential investor interest despite failing the EPS growth rate test, which keeps its rating at a neutral level of 6.

Stocks: WSO LZB KFY TSCDY DNPLY