L Brands closed at $74.21 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's 0.33% loss on the day.
Coming into today, shares of the owner of Victoria's Secret, Bath & Body Works and other chain stores had gained 13.53% in the past month. In that same time, the Retail-Wholesale sector gained 1.01%, while the S&P 500 gained 2.89%.
Investors will be hoping for strength from LB as it approaches its next earnings release, which is expected to be August 19, 2021. The company is expected to report EPS of $1.01, up 304% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.19 billion, up 37.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.96 per share and revenue of $14.41 billion. These totals would mark changes of +72.25% and +21.62%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for LB. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3.01% higher. LB is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, LB is currently trading at a Forward P/E ratio of 12.6. This valuation marks a discount compared to its industry's average Forward P/E of 16.93.
It is also worth noting that LB currently has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.