Why Legget & Platt (LEG) is a Top Growth Stock for the Long-Term

According to Zacks Investment Research, Leggett & Platt (LEG), a global manufacturer of engineered components, is a stock to watch for growth investors. While currently holding a Zacks Rank #3 (Hold), LEG boasts a VGM Score of A and a Growth Style Score of B, with a projected 5.7% year-over-year earnings growth for the current fiscal year; analysts have also increased the fiscal year 2025 consensus earnings estimate by $0.02 to $1.11 per share in the last 60 days.

Analysis

Leggett & Platt (LEG), a global manufacturer of engineered components, holds a Zacks Rank #3 (Hold), yet is highlighted for its growth potential. The company exhibits strong underlying financial characteristics, evidenced by a VGM Style Score of 'A' and a Growth Style Score of 'B'. This positive assessment is supported by a forecasted 5.7% year-over-year earnings growth for the current fiscal year. Furthermore, analyst sentiment for fiscal 2025 has seen improvement, with the Zacks Consensus Estimate for earnings per share increasing by $0.02 to $1.11 in the last 60 days due to two upward revisions. LEG also has a track record of slightly exceeding expectations, with an average earnings surprise of 0.3%. While a #3 Rank typically suggests a neutral short-term outlook, the article emphasizes that such a rank, when combined with strong Style Scores (A or B), can indicate upside potential, positioning LEG as a stock for investors to watch, particularly those focused on growth attributes.

Key Decisions for Investors

• Despite the Zacks Rank #3 (Hold), investors focused on growth should note LEG's strong 'A' VGM and 'B' Growth Style Scores, alongside a projected 5.7% current-year earnings growth and positive fiscal 2025 estimate revisions, suggesting potential upside.
• Closely monitor for any changes in LEG's Zacks Rank or further upward revisions in earnings estimates, as these would provide stronger confirmation of positive momentum according to the underlying methodology.
• While the 'Hold' status warrants a degree of caution, growth-oriented investors might consider LEG for their watchlist, aligning with the article's suggestion that it 'could be a top pick' and 'should be on investors' short list' for this investor profile.