New Lifetime High Reached By L Brands (LB)

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 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 $128.8 million.
  • LB has traded 7,014 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 1.7%. LB has a PE ratio of 25.0. Currently there are 13 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 1.8 million shares per day over the past 30 days. L has a market cap of $23.8 billion and is part of the services sector and retail industry. The stock has a beta of 1.36 and a short float of 2.2% with 3.50 days to cover. Shares are up 33.8% year-to-date as of the close of trading on Wednesday.

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, impressive record of earnings per share growth, compelling growth in net income, revenue growth 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:
  • Powered by its strong earnings growth of 41.93% and other important driving factors, this stock has surged by 36.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • L BRANDS INC has improved earnings per share by 41.9% in the most recent quarter compared to the same quarter a year ago. 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 ($3.33 versus $3.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 43.5% when compared to the same quarter one year prior, rising from $92.00 million to $132.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 6.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 80.25% to -$76.00 million when compared to the same quarter last year. In addition, L BRANDS INC has also vastly surpassed the industry average cash flow growth rate of -22.10%.

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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