New Lifetime High Reached: L Brands (LTD)

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 new lifetime high 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 $116.0 million.
  • LTD has traded 1.7 million shares today.
  • LTD is trading at a new lifetime high.

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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 1.9%. LTD has a PE ratio of 23.1. 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 2.1 million shares per day over the past 30 days. L has a market cap of $18.3 billion and is part of the services sector and retail industry. The stock has a beta of 0.72 and a short float of 4.3% with 5.75 days to cover. Shares are up 33.9% 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, growth in earnings per share, increase in net income 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:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.73% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • LTD's revenue growth trails the industry average of 19.6%. Since the same quarter one year prior, revenues slightly increased by 4.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • L BRANDS INC has improved earnings per share by 24.5% 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 ($3.19 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 23.9% when compared to the same quarter one year prior, going from $143.65 million to $178.00 million.
  • Net operating cash flow has increased to $474.00 million or 22.16% when compared to the same quarter last year. Despite an increase in cash flow, L BRANDS INC's average is still marginally south of the industry average growth rate of 29.22%.

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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