Wall Street started December in reverse: weak manufacturing data, higher bond yields and a brutal crypto sell-off weighed on risk appetite. A handful of stock stories - from Disney’s box-office win to Nvidia’s new chip-design bet - kept things interesting, but the overall tone was cautious.
Shares of manufacturing company Leggett & Platt (NYSE:LEG)
jumped 15.2% in the afternoon session after bedding manufacturer Somnigroup International proposed to acquire the company in an all-stock deal valued at about $1.6 billion. Under the terms of the unsolicited proposal, Leggett & Platt shareholders would receive Somnigroup common stock valued at $12.00 for each share they owned. This price represented a 30.3% premium to Leggett & Platt's average closing price over the previous 30 trading days. Leggett & Platt confirmed it received the non-binding offer and its Board of Directors planned to carefully review it with financial and legal advisors. The company also told its shareholders that no action was needed at the time.
Wondering how the US markets performed in the middle of the day on Monday? Discover the movers and shakers of today's session in our comprehensive analysis.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at home furnishings stocks, starting with Leggett & Platt (NYSE:LEG).
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Consumer discretionary businesses are levered to the highs and lows of economic cycles. This sensitive demand profile can cause the industry to underperform when macro uncertainty enters the fray,
and over the past six months, its 14.8% return has fallen short of the S&P 500’s 19.5% gain.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Leggett & Platt’s third quarter was marked by operational discipline and continued execution on restructuring efforts, as results met Wall Street’s profit expectations and slightly exceeded revenue estimates. Management attributed performance to cost reductions across its manufacturing footprint, improved operational execution, and benefits from its restructuring plan, despite ongoing softness in residential end markets. CEO Karl Glassman noted the company’s “nearly two years of disciplined cost structure improvements,” with particular emphasis on portfolio optimization and balance sheet strengthening. Management also highlighted the completion of the Aerospace business divestiture and ongoing cost savings in its Bedding, Furniture, and Hydraulic Cylinders segments.
Shares of manufacturing company Leggett & Platt (NYSE:LEG)
fell 2.9% in the afternoon session after the stock continued to retreat as the company reported third-quarter financial results that revealed softer sales, overshadowing a significant jump in net earnings. Although net earnings rose to $127.1 million from $44.9 million in the same period a year ago, this was largely due to one-time events. The company recorded an $86.8 million gain from the sale of its Aerospace Products Group, along with other real estate gains and insurance proceeds. However, investors appeared to focus on the decline in core business activity, as net trade sales fell to $1.04 billion from $1.10 billion the previous year. The market's reaction suggested concern about the company's underlying operational performance, looking past the profits generated by asset sales.
Shares of manufacturing company Leggett & Platt (NYSE:LEG)
fell 3.8% in the afternoon session as investors appeared to take profits following a significant rally in the previous session, which was prompted by the company's third-quarter earnings report.
Manufacturing company Leggett & Platt (NYSE:LEG) reported Q3 CY2025 results exceeding the market’s revenue expectations, but sales fell by 5.9% year on year to $1.04 billion. On the other hand, the company’s full-year revenue guidance of $4.05 billion at the midpoint came in 1% below analysts’ estimates. Its non-GAAP profit of $0.29 per share was in line with analysts’ consensus estimates.
Manufacturing company Leggett & Platt (NYSE:LEG) announced better-than-expected revenue in Q3 CY2025, but sales fell by 5.9% year on year to $1.04 billion. On the other hand, the company’s full-year revenue guidance of $4.05 billion at the midpoint came in 1% below analysts’ estimates. Its non-GAAP profit of $0.29 per share was in line with analysts’ consensus estimates.
Leggett & Platt's Q3 2025 results show a slight EPS miss but solid revenue. The company completed the sale of its Aerospace business to sharpen its focus on core operations.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10.
However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.
