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Tilly's (TLYS) Stock Sinks As Market Gains: What You Should Know

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Tilly's (TLYS - Free Report) closed the most recent trading day at $9.80, moving -0.2% from the previous trading session. This move lagged the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.11%.

Coming into today, shares of the clothing and accessories retailer had lost 5.03% in the past month. In that same time, the Retail-Wholesale sector gained 1.18%, while the S&P 500 gained 4.32%.

TLYS will be looking to display strength as it nears its next earnings release, which is expected to be December 4, 2019. On that day, TLYS is projected to report earnings of $0.21 per share, which would represent a year-over-year decline of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $154.67 million, up 5.34% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $625.01 million. These totals would mark changes of +3.75% and +4.43%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TLYS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TLYS currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, TLYS is holding a Forward P/E ratio of 11.8. This valuation marks a discount compared to its industry's average Forward P/E of 13.42.

It is also worth noting that TLYS currently has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TLYS's industry had an average PEG ratio of 1.4 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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