L Brands closed the most recent trading day at $71.38, moving -1.2% from the previous trading session. This move lagged the S&P 500's daily loss of 0.86%.
Coming into today, shares of the owner of Victoria's Secret, Bath & Body Works and other chain stores had gained 10.37% in the past month. In that same time, the Retail-Wholesale sector gained 3.7%, while the S&P 500 gained 3.22%.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $3.19 billion, up 37.4% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.79 per share and revenue of $14.41 billion. These totals would mark changes of +67.34% and +21.61%, respectively, from last year.
Any recent changes to analyst estimates for LB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LB currently has a Zacks Rank of #2 (Buy).
Investors should also note LB's current valuation metrics, including its Forward P/E ratio of 12.48. For comparison, its industry has an average Forward P/E of 16.77, which means LB is trading at a discount to the group.
Investors should also note that LB has a PEG ratio of 0.96 right now. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.