L Brands Inc (LTD): Today's Featured Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

L Brands ( LTD) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.1%. By the end of trading, L Brands fell $1.00 (-1.9%) to $50.66 on average volume. Throughout the day, 3,908,706 shares of L Brands exchanged hands as compared to its average daily volume of 2,771,700 shares. The stock ranged in price between $49.85-$51.48 after having opened the day at $51.48 as compared to the previous trading day's close of $51.66. Other companies within the Retail industry that declined today were: Ascena Retail Group ( ASNA), down 8.7%, Sears Hometown & Outlet Stores ( SHOS), down 4.1%, QKL Stores ( QKLS), down 4.1% and Village Super Market ( VLGEA), down 2.6%.
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L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. L Brands has a market cap of $15.0 billion and is part of the services sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 9.8% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate L Brands a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates L Brands as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the positive front, Orchard Supply Hardware ( OSH), down 24.5%, Conn's ( CONN), down 11.3%, China Jo-Jo Drugstores ( CJJD), down 7.4% and Christopher & Banks Corporation ( CBK), down 6.7% , were all gainers within the retail industry with CVS Caremark ( CVS) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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