L Brands Inc (NYSE: LB) shares are tumbling
8.3 percent on Tuesday following negative commentary from management and a 2016 full-year guidance cut. Following
Tuesday’s drop, shares of the battered retailer are now down 31.1 percent in 2016.
PreMarket
Prep hosts Joel Elconin and Dennis Dick discussed the implications of L Brands’ guidance cut for the rest of the retail sector
on Tuesday morning's show. With the holiday season fast approaching, Dick said he is becoming increasingly concerned that the
market may be in for “retail hell” in Q4.
Shareholders of stocks such as Nordstrom, Inc. (NYSE: JWN), Kohl’s Corporation (NYSE: KSS), Gap Inc (NYSE: GPS) and other retailers could be set up for a big pullback, especially considering
how the stocks have
outperformed lately.
“We haven’t had retail hell here for a little while, and there have been some pretty good runs in some of these retail stocks,”
Dick concluded.
“You’ve got Cyber Monday and the day after Thanksgiving, so you’ve got a lot of events that may determine what kind of holiday
season we’re going to have, and it’s not too early to start talking about it,” Elconin added. “Watch out in these retailers. You
have a catalyst in L Brands.”
Both Gap and Nordstrom are down more than 2.0 percent on Tuesday following the L Brands news.
Listen to the full interview below:
PreMarket Prep is a daily trading ideas show that focuses on technical analysis and actionable short-term trades. You can listen
to the show live every morning from 8–9 a.m. ET here or catch the
podcast here.
Latest Ratings for LB
Date |
Firm |
Action |
From |
To |
Nov 2016 |
Mizuho |
Downgrades |
Buy |
Buy |
Aug 2016 |
Goldman Sachs |
Upgrades |
Neutral |
Buy |
Aug 2016 |
Citigroup |
Maintains |
|
Neutral |
View More Analyst Ratings for
LB
View the Latest Analyst Ratings
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