Haverty Furniture Companies, Inc. (HVT)

(A Top Pick Nov 16/21, Down 21.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HVT has triggered its stop at $27. To remain disciplined, we recommend covering the position at this time. This results in a net investment loss of 14%, when considering our previous buy recommendation.

Stockchase Research Editor: Michael O'Reilly HVT manufactures residential furniture and mattress products under the Sealy, Serty and Beautyrest brand names and is reiterated as a TOP PICK. It trades at 7x earnings compared to peers at 27x and is valued at just over 2x book value. It has paid a dividend every year since 1935. The yield is attractive and backed by a payout ratio under 25% of cash flow. The company continues to buy back shares, while still increasing cash reserves. We recommend trailing up the stop (from $23 stop) to $27, looking to achieve $43 -- upside of over 22%. Yield 2.93% (Analysts’ price target is $64.00)

(A Top Pick Feb 23/21, Up 32.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HVT is progressing well. We are recommending to trail up the stop to $34. This would all but ensure a minimum investment return exceeding 30%, including the recommendation to cover 50% previously.

(A Top Pick Dec 15/20, Up 34%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HVT has achieved its $36 objective. To be disciplined, we recommend covering 50% of the position and trailing up the stop to $29. This would all but guarantee a minimum investment return of 20%.

Stockchase Research Editor: Michael O'Reilly HVT manufactures residential furniture and mattress products under the Sealy, Serty and Beautyrest brand names. The pandemic has slowed sales, but has seen earnings grow over 200% in the past quarter. The company recently provided guidance for Q4 that exceeds analyst expectations. The dividend is decent and is backed by a payout ratio of only 35% of cash flow. We would trade this with a $23 stop-loss, looking to achieve $36 -- upside of over 33%. Yield 3.41% (Analysts’ price target is $36.00)