Trade-Ideas LLC identified

L Brands

(

LB

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified L Brands as such a stock due to the following factors:

  • LB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $316.2 million.
  • LB is down 2% today from today's close.

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More details on LB:

L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. The stock currently has a dividend yield of 3.6%. LB has a PE ratio of 16. Currently there are 10 analysts that rate L Brands a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for L Brands has been 2.8 million shares per day over the past 30 days. L has a market cap of $19.1 billion and is part of the services sector and retail industry. The stock has a beta of 0.82 and a short float of 4% with 1.90 days to cover. Shares are down 31.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates L Brands as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 12.6% when compared to the same quarter one year prior, going from $565.00 million to $636.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.1%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • L BRANDS INC has improved earnings per share by 13.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, L BRANDS INC increased its bottom line by earning $4.22 versus $3.49 in the prior year. For the next year, the market is expecting a contraction of 2.7% in earnings ($4.11 versus $4.22).
  • LB has underperformed the S&P 500 Index, declining 21.52% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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