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

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Tilly's (TLYS - Free Report) closed the most recent trading day at $15.84, moving +0.38% from the previous trading session. This change outpaced the S&P 500's 0.25% gain on the day.

Prior to today's trading, shares of the clothing and accessories retailer had lost 0.5% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.19% and lagged the S&P 500's gain of 1.65% in that time.

TLYS will be looking to display strength as it nears its next earnings release, which is expected to be September 2, 2021. On that day, TLYS is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 133.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $189.07 million, up 39.18% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.31 per share and revenue of $715.21 million. These totals would mark changes of +3375% and +34.61%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TLYS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TLYS is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, TLYS currently has a Forward P/E ratio of 12.05. This valuation marks a discount compared to its industry's average Forward P/E of 16.92.

It is also worth noting that TLYS currently has a PEG ratio of 1.2. 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 106, putting it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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