In the latest trading session, L Brands closed at $77.53, marking a +0.09% move from the previous day. This move outpaced the S&P 500's daily loss of 0.47%.
Coming into today, shares of the owner of Victoria's Secret, Bath & Body Works and other chain stores had gained 9.14% in the past month. In that same time, the Retail-Wholesale sector lost 1%, while the S&P 500 gained 3.38%.
LB will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2021. In that report, analysts expect LB to post earnings of $1.29 per share. This would mark year-over-year growth of 416%. Meanwhile, our latest consensus estimate is calling for revenue of $3.35 billion, up 44.25% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.21 per share and revenue of $14.56 billion. These totals would mark changes of +79.48% and +22.89%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for LB. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.17% higher. LB is currently a Zacks Rank #1 (Strong Buy).
Investors should also note LB's current valuation metrics, including its Forward P/E ratio of 12.48. Its industry sports an average Forward P/E of 16.81, so we one might conclude that LB is trading at a discount comparatively.
We can also see that LB currently has a PEG ratio of 0.96. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.