Bullish Case: History as a dividend king implies strong cash flows. High dividend yield of 6.5% is attractive in this market. (44 words)


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Bearish Case: Profitability and sales in secular decline. Payout ratio over 100% raises dividend sustainability concerns. (26 words)


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Takeaway: LEG's high dividend yield is tempting but underlying business weakness and an unsafe payout ratio make the stock risky over the long-term. Investors should weigh dividend sustainability versus total return potential. (49 words)


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Potential Outcomes:

1. 35% chance dividend is cut due to high payout ratio.

2. 45% chance stock price declines further on weak fundamentals.

3. 20% chance stock is rangebound based on high yield. (71 words)


September 30, 2023


Leggett & Platt Forecast

[LEG]  Leggett & Platt
Price Forecast: NEUTRAL    Price Action: FLAT



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LEG Balanced News:


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NVCR Forecast + Options Trading Strategies   [NVCR]  NovoCure (0.89)


NDAQ Forecast + Options Trading Strategies   [NDAQ]  Nasdaq (0.86)


AA Forecast + Options Trading Strategies   [AA]  Alcoa (0.85)


ARE Forecast + Options Trading Strategies   [ARE]  Alexandria Real Estate (0.85)


GEO Forecast + Options Trading Strategies   [GEO]  Geo Group (0.84)



Uncorrelated Stock Forecasts

Assets with little price relationship to LEG



HSY Forecast + Options Trading Strategies   [HSY]  Hershey (-0.01)


CLMT Forecast + Options Trading Strategies   [CLMT]  Calumet Specialty Products (-0.01)


MVIS Forecast + Options Trading Strategies   [MVIS]  Microvision (0.01)


GES Forecast + Options Trading Strategies   [GES]  Guess (-0.01)


UMC Forecast + Options Trading Strategies   [UMC]  United Micro Electronics (-0.02)



Anticorrelated Stock Forecasts

Assets that tend to move strongly against LEG



CDNS Forecast + Options Trading Strategies   [CDNS]  Cadence Design Systems (-0.75)


INTU Forecast + Options Trading Strategies   [INTU]  Intuit (-0.75)


CBOE Forecast + Options Trading Strategies   [CBOE]  Cboe Global Markets (-0.75)


GE Forecast + Options Trading Strategies   [GE]  General Electric (-0.77)


SOVO Forecast + Options Trading Strategies   [SOVO]  Sovos Brands (-0.81)