Will The Gains For L Brands Stock Continue?

BRAZIL – June 16, 2020: The L Brands logo is depicted on a smartphone in this photo illustration. [+] (Image courtesy of Rafael Henrique/SOPA Images/LightRocket/Getty Images)
Getty Images/SOPA Images/LightRocket
The stock of L Brands (NYSE: LB), an apparel-based specialty retailer focused on home fragrance products, body care, soaps and sanitizers, women’s intimate and other apparel, and personal and beauty care products, has increased by around 8% in the last twenty-one trading days (one month) and is currently trading at around $74. It’s worth noting that the broader S&P500 only grew by a smidgeon during the same time span. Victoria’s Secret has been struggling for years, which is why L Brands is planning to spin it off as a separate, publicly traded company. Victoria’s Secret still made a lot of money, with over $1.5 billion in the first quarter of 2021 and $5.4 billion in 2020, but that’s still down from $7.5 billion the year before and $7.8 billion in 2016. Is LB stock destined to rise even higher now? We feel the company is still undervalued on a fundamental level, and the stock has space to grow in the future. Based on our machine learning research of stock price trends over the last ten years, there is a 64% chance that LB’s stock will gain in the next month (twenty-one trading days). For additional information, see our LB Stock Chances of Rise study.

Trefis’ Chance to Rise

‘Event Probability’ and ‘Chance of Rise’ were calculated using data from the previous ten years.
[1] 813 times out of 2517, the stock rose in the next five days; 418 times out of 813, the stock rose in the next five days.
[2] 81 times out of 2517, there was a 17 percent or higher return during the ten-day period; 37 of these 81 occasions, the stock rose in the next ten days.
[3] 596 times out of 2517, there was a 7.9% or higher return throughout the twenty-one-day period; 383 of these 596 occasions, the stock climbed in the next 21 days.
ADDITIONAL INFORMATION FOR YOU
Retail revenues are being eroded by e-commerce, yet this could be an investment opportunity. A wide range of companies that stand to benefit from the huge change may be found in our E-commerce Stocks topic.
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