Is L Brands, Inc. (NYSE:LB) A Safe Bet For Investors?


L Brands, Inc. (NYSE:LB) closed its last session at $50.01. The stock traded within a range of $48.33 and $50.05. The company operates in the Consumer Cyclical sector with a market capitalization of 14.3 Million. Trading volume for L Brands, Inc. was 5.35 Million in its previous trading session. Currently, L Brands, Inc. (NYSE:LB) has an average volume of 4.5 Million.

Company Profile

L Brands, Inc. operates as a retailer of women’s intimate and other apparel, beauty and personal care products and accessories primarily in the United States. Its brand includes Victoria’s Secret, Victoria’s Secret Pink, Bath & Body Works, La Senza and Henri Bendel. The company sells its product through franchise, license, wholesale partners, websites, catalogue, and other channels. L Brands Inc., formerly known as Limited Brands Inc., is headquartered in Columbus, Ohio.

Analyst Views

L Brands, Inc. (NYSE:LB) received a Buy rating from 4 analysts. 1 analysts gave its stock an Outperform rating. 3 analysts say it’s a Hold while 0 analysts provided their expert opinion as Sell.

L Brands, Inc. (NYSE:LB) touched its 1-Year High price of $63.10 on 12/26/17 and its 1-Year Low price of $35.00 on 08/17/17.

EPS & Financials

L Brands, Inc. (NYSE:LB) reported its EPS in the last quarter as $0.3/Share lagging the analyst estimate of $0.3/Share by a difference of $0. This showed a surprise of 0% in the last quarter earnings.

For the current quarter, 27 analysts are projecting a mean EPS of $2.01/share. According to their observations and findings, the stock could provide a high EPS of $2.08/share and a low EPS of $1.96/share.

Analysts believe that the company has the potential to earn average revenue of $4.72 Billion for the current quarter. According to their predictions high & low revenue estimates are 4.82 Billion and 4.57 Billion respectively.

Technical Analysis

By taking a look at the stock’s current statistics it can gauged that the stock candle is BULLISH with HIGH volatility. L Brands, Inc. (NYSE:LB) has a 20-Day average volume of 5.17 Million. According to today’s trading volume L Brands, Inc. is ABOVE its 20-Day Avg. volume with the stock showing ABOVE Abnormal volume in the past 150 days.

Moving average convergence divergence (MACD) shows that the stock is on a PRICE RELATIVITY trend. The trend for the past 10-days shows that the company was in BEARISH territory while an analysis of the last 40-Day trend shows a BULLISH signal. The 100-Day trend also shows a BULLISH trend as well.

The company currently has an insider ownership of 0.1 Percent and Institutional ownership of 82.2 Percent. The return on assets stands at 12%, Return on Equity currently is -105.7% and the Return on Investment value is 29.3%.

L Brands, Inc. (NYSE:LB) gross margin percentage stands at 39.5% while its operating margin for the past trailing twelve month is 14.1 percent and its overall profit margin (ttm) is 7.7 Percent. The stock is currently moving below its 20-Day Simple Moving Average of -12.78% with a 50-Day Simple Moving Average of -5.96 percent. As of today, the company has a SMA200 (200-day simple moving average) of 5.13 Percent. The Stock has YTD (year to date) performance of -16.95 percent.

The TTM operating margin for the company stands at 14.1%. The return on invested capital is at 29.3%, which is good, compared to its peers. The Free Cash Flow or FCF margin is 86.64.

The company’s stock is currently moving with a +ve distance from the 200 day SMA of approximately 5.13%, and has a solid year to date (YTD) performance of -16.95% which means that the stock is constantly adding to its value from the previous fiscal year end price.