L Brands Inc. (LB) shares are trading at lower $39.69 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $38.54.
To add more color to this target, the company’s high over the last year is $40.82 and the low is $8.00. Over the last 52 weeks, LB is up 107.04% while the S&P 500 is up 15.91%. 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 $1.36 billion. L Brands Inc. also saw revenues increase to $3.06 billion. In addition, LB has free cash flow of $0.0 as of 10-2020.
LB booked profit margins of -6.00%, its Return on Equity (ROE) is 43.20%, and its Return on Assets is -6.80%. 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 2.03 and outstanding shares of 278.00M.
LB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 7.68 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.78. 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 10.91B and a float of 224.47M. 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.