L Brands Inc. (NYSE: LB) is a global apparel manufacturer and the owner of brands like Victoria’s Secret, Bath & Body Works, and PINK. The company is expecting strong growth and has just raised its earnings target for its next quarterly report. Now could be the best time to buy into this stock.
L Brands increased its guidance for the first quarter, taking it from a range of $0.35 – $0.45 per share at the beginning of this month, up to $0.55 – $0.65 per share. The company has now increased its guidance again on the back of strong sales and efficiency within the business. It expects that the upcoming report will include earnings per share between $0.85 – $1.00.
Earnings revisions are driving confidence in the stock and there is already momentum behind this pick. With America beginning to manage the Coronavirus Pandemic with vaccine rollouts, an increase in job hiring, and boosted economic activity, L Brands is likely to generate strong revenue in 2021.
The average target price of $68.62 represents a reasonable upside over today’s price, while the high-end analyst target of $88.00 suggests that the return could be significant if L Brands continues to grow earnings and revenue along with America’s economic recovery. At a reasonable price and with strong potential, this is a stock to watch.
- 1 Year Price Growth: 96%
- YTD Price Growth: 69%
- 3 Month Price Growth: 98%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.