Trade-Ideas: L Brands (LTD) Is Today's Post-Market Laggard Stock

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 L Brands ( LTD) 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:

  • LTD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $130.7 million.
  • LTD is down 2.1% today from today's close.

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More details on LTD:

L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. The stock currently has a dividend yield of 2%. LTD has a PE ratio of 22.6. Currently there are 11 analysts that rate L Brands a buy, 3 analysts rate it a sell, and 9 rate it a hold.

The average volume for L Brands has been 2.5 million shares per day over the past 30 days. L has a market cap of $17.1 billion and is part of the services sector and retail industry. The stock has a beta of 0.87 and a short float of 4.1% with 4.38 days to cover. Shares are up 28.9% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates L Brands as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. 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:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
  • LTD's revenue growth trails the industry average of 15.4%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to -$120.00 million or 34.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.29%.
  • L BRANDS INC has improved earnings per share by 17.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, L BRANDS INC reported lower earnings of $2.54 versus $2.71 in the prior year. This year, the market expects an improvement in earnings ($3.18 versus $2.54).
  • 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 14.8% when compared to the same quarter one year prior, going from $124.56 million to $143.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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