The L Brands Inc. (LB) shares are trading at higher $27.00 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $22.24.
To add more color to this target, the company’s high over the last year is $28.17 and the low is $8.00. Over the last 52 weeks, LB is down -4.15% while the S&P 500 is up 1.39%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LB reported a profit of $288.0 million. L Brands Inc. also saw revenues increase to $1.65 billion. In addition, LB has free cash flow of -$397.0 million as of 04-2020. The company’s EBITDA came in at -$179.0 million which compares well with its peers.
LB booked profit margins of -5.90%, its Return on Equity (ROE) is 50.80%, and its Return on Assets is -6.90%. All told, it is clear that, LB needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LB has a short ratio of 2.66 and outstanding shares of 277.00M.
LB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 5.13 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.54. L Brands Inc. LB also noted assets of $9.44 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LB has historically followed its peers on positive news.
All told, L Brands Inc. LB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LB represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
L Brands Inc. LB is now commanding a market cap of 7.28B and a float of 228.28M. LB is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in LB, either long or short, and we have not been compensated for this article.