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 $260.3 million.
  • LB is down 6.2% 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 2.9%. LB has a PE ratio of 21. Currently there are 8 analysts that rate L Brands a buy, no analysts rate it a sell, and 15 rate it a hold.

The average volume for L Brands has been 2.1 million shares per day over the past 30 days. L has a market cap of $24.3 billion and is part of the services sector and retail industry. The stock has a beta of 0.79 and a short float of 3.3% with 2.47 days to cover. Shares are down 12.4% 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 revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • LB's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • L BRANDS INC has improved earnings per share by 25.0% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, L BRANDS INC increased its bottom line by earning $3.49 versus $3.05 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $3.49).
  • 45.97% is the gross profit margin for L BRANDS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.60% trails the industry average.
  • Compared to where it was trading a year ago, LB's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Net operating cash flow has decreased to -$113.00 million or 48.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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