L Brands, Inc. (NYSE:LB) is one of the stocks that are grabbing investor focus today: skyrocketing 6.44% or (1.08 points) to $17.92 from its previous close of $16.84. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 2234401 contracts so far this session. LB shares had a relatively better volume day versus average trading capacity of 5.62 million shares, but with a 0.23 billion float and a -9.27% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for LB stock indicates that the average analyst price target is $22.74 per share. This means the stock has a potential increase of 26.9% from where the LB share price has been trading recently which is between $16.57 and $17.4.
During the recent trading session for L Brands, Inc. (NYSE:LB), the company witnessed their stock drop by $-0.5 over a week and tumble down $-0.91 from the price 20 days ago. When compared to their established 52-week high of $38, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 12/11/18. The recent low of $15.82 stood for a -52.83% since 03/09/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.81 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for L Brands, Inc., the two-week RSI stands at 44.34. This figure suggests that LB stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current LB readings is similarly very revealing as it has a stochastic reading of 16.4% at this stage. This figure means that LB share price today is being overbought.
Technical chart claims that L Brands, Inc. (LB) would settle between $17.3/share to $17.77/share level. However, if the stock price goes below the $16.47 mark, then the market for L Brands, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $16.11 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.72. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Telsey Advisory Group lifted target price for shares of LB but were stick to Market Perform recommendation for the stock in their opinion released on August 23. The price target has been raised from $24 to $22. RBC Capital Mkts analysts have lowered their rating of L Brands, Inc. (NYSE:LB) stock from Outperform to Sector Perform in a separate flash note issued to investors on August 23. Analysts at Citigroup lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to July 15.
LB equity has an average rating of 2.51, with the figure leaning towards a bullish end. 22 analysts who tracked the company were contacted by Reuters. Amongst them, 13 rated the stock as a hold while the remaining 9 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 6 analysts rated L Brands, Inc. (NYSE:LB) as a buy or a strong buy while 3 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, LB stock price is currently trading at 6.86X forward 12-month Consensus EPS estimates, and its P/E ratio is 8.1 while for the average stock in the same group, the multiple is 22. L Brands, Inc. current P/B ratio of 0 means it is trading at a discount against its industry’s 6.6.