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Tilly's (TLYS) Gains As Market Dips: What You Should Know

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Tilly's (TLYS - Free Report) closed the most recent trading day at $9.14, moving +0.22% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.27%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the clothing and accessories retailer had lost 25.55% over the past month, lagging the Retail-Wholesale sector's gain of 8.25% and the S&P 500's gain of 7.36% in that time.

Tilly's will be looking to display strength as it nears its next earnings release. In that report, analysts expect Tilly's to post earnings of $0.03 per share. This would mark a year-over-year decline of 91.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $145.79 million, down 10.65% from the year-ago period.

TLYS's full-year Zacks Consensus Estimates are calling for earnings of $1.07 per share and revenue of $721.6 million. These results would represent year-over-year changes of -48.06% and -6.97%, respectively.

Investors might also notice recent changes to analyst estimates for Tilly's. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 has moved 34.61% lower. Tilly's is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, Tilly's is currently trading at a Forward P/E ratio of 8.54. For comparison, its industry has an average Forward P/E of 9.13, which means Tilly's is trading at a discount to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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