In the latest trading session, L Brands closed at $74.05, marking a +0.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%.
Coming into today, shares of the owner of Victoria's Secret, Bath & Body Works and other chain stores had gained 11.34% in the past month. In that same time, the Retail-Wholesale sector gained 3.13%, while the S&P 500 gained 2.91%.
Wall Street will be looking for positivity from LB as it approaches its next earnings report date. In that report, analysts expect LB to post earnings of $0.99 per share. This would mark year-over-year growth of 296%. Our most recent consensus estimate is calling for quarterly revenue of $3.19 billion, up 37.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.79 per share and revenue of $14.41 billion, which would represent changes of +67.34% and +21.61%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for LB. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LB is currently a Zacks Rank #2 (Buy).
Investors should also note LB's current valuation metrics, including its Forward P/E ratio of 12.7. This valuation marks a discount compared to its industry's average Forward P/E of 18.07.
Meanwhile, LB's PEG ratio is currently 0.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LB's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.