Leggett & Platt Is About 15% Overpriced

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About: Leggett & Platt, Incorporated (LEG)
by: Patrick Doyle
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Patrick Doyle
Long/short equity, long only, Growth, momentum
Summary

I think the market has gotten ahead of itself in regard to Leggett & Platt.

Although this is a fine company and the increased leverage is not a problem, the shares are trading near a multi-year high valuation.

I would avoid buying at this time, but I think there is a very profitable options trade available that I elucidate below.

Over the past year, the shares of Leggett & Platt Inc. (LEG) are up about 38%, and I thought I'd look in on this so-called dividend aristocrat to see if there's still value