PAA Research on X
Big gap higher pre-mkt for $W. Furniture names in general have been ripping the past 3-months. QUIETLY. 4+ years of brutal housing market headwinds and these businesses have been grinding away, generating cash, buying back stock, preserving margins. Easy comps + the potential of an upturn in housing velocity make it a good recipe for longs with valuations that remain notably cheap relative to mid-cycle EBITDA. Look at some of these 3-month returns: $BOBS: 64.8% $W: 35.8% $BSET: 34.1% $WSM: 33.2% $HOFT: 21.4% $LZB: 18.5% $ETD 12.2% There's plenty of juice in the group with a sustained upturn in home furnishings spend after the post-COVID19 crash. $WSM is on our Buyback Outliers list. I own $BSET, $ETD, $BBBY
