L Brands (LB) Lags In Post-Market Trading

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 ( 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 $125.3 million.
  • LB is down 3.5% 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 two segments, Victoria's Secret and Bath & Body Works. The stock currently has a dividend yield of 1.8%. LB has a PE ratio of 24.9. Currently there are 14 analysts that rate L Brands a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for L Brands has been 1.7 million shares per day over the past 30 days. L has a market cap of $22.7 billion and is part of the services sector and retail industry. The stock has a beta of 1.33 and a short float of 2.9% with 4.25 days to cover. Shares are up 25% 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 buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, 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:
  • LB's revenue growth has slightly outpaced the industry average of 1.5%. 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.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • 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 ($3.29 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.
  • 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 average is still marginally south of the industry average growth rate of 20.78%.

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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