Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high 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 $112.7 million.
- LB has traded 183,414 shares today.
- LB is trading at a new lifetime high.
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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 two segments, Victoria's Secret and Bath & Body Works. The stock currently has a dividend yield of 2%. LB has a PE ratio of 21.8. Currently there are 13 analysts that rate L Brands a buy, 2 analysts rate it a sell, and 8 rate it a hold.
The average volume for L Brands has been 1.5 million shares per day over the past 30 days. L has a market cap of $19.9 billion and is part of the services sector and retail industry. The stock has a beta of 1.03 and a short float of 2.5% with 3.36 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Thursday.
rates L Brands as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, increase in stock price during the past year and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- LB's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- L BRANDS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, L BRANDS INC increased its bottom line by earning $3.05 versus $2.54 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $3.05).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 5.6% when compared to the same quarter one year prior, going from $178.00 million to $188.00 million.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has increased to $535.00 million or 12.86% when compared to the same quarter last year. Despite an increase in cash flow, L BRANDS INC's cash flow growth rate is still lower than the industry average growth rate of 24.41%.
- You can view the full L Brands Ratings Report.