L Brands’ Stock Gained 10%, Room For More?

February 11th, 2021 by Trefis Team
LB: La Barge logo
LB
La Barge

L Brands (NYSE:LB) stock, a women’s intimate apparel, personal care, and beauty products retailer, has rallied by 10% over the last five trading days and currently stands at around $48. In comparison, the broader S&P 500 returned only over 2% growth over the same period. Now, is L Brands stock poised to grow further? We believe the company remains fundamentally overvalued, trading at about 15x consensus 2021 earnings, and the company’s stock could decline going forward. Specifically, there is a 55% chance of a drop in L Brands stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last five years. See our analysis on L Brands Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the L Brands Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how LB stock could move.

5 Day: LB 10%, vs. S&P500 2.3%; Outperformed market (7% likelihood event)

  • L Brands stock rose 10% over a 5-day trading period, compared to broader market (S&P500) rise of 2.3%
  • A change of 10% or more over 5 trading days is a 7% likelihood event, which has occurred 85 times out of 1256 in the last 5 years

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10 Day: LB 29%, vs. S&P500 4.5%; Outperformed market (38% likelihood event)

  • L Brands stock rose 29% over the last 10 trading days (2 weeks), compared to broader market (S&P500) rise of 4.5%
  • A change of 29% or more over 10 trading days is a 38% likelihood event, which has occurred 474 times out of 1240 in the last 5 years

While L Brands stock may have moved, 2020 has created many pricing discontinuities that can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Amazon vs Etsy. 

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