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Tilly's (TLYS) Flat As Market Sinks: What You Should Know

Zacks Equity Research

Tilly's (TLYS) closed the most recent trading day at $10.23, making no change from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.2%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the clothing and accessories retailer had gained 4.6% in the past month. In that same time, the Retail-Wholesale sector gained 6.5%, while the S&P 500 gained 7.08%.

Wall Street will be looking for positivity from TLYS as it approaches its next earnings report date. This is expected to be December 4, 2019. The company is expected to report EPS of $0.21, down 12.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $154.67 million, up 5.34% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $625.01 million. These totals would mark changes of +3.75% and +4.43%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TLYS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TLYS currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, TLYS is holding a Forward P/E ratio of 12.29. For comparison, its industry has an average Forward P/E of 13.26, which means TLYS is trading at a discount to the group.

It is also worth noting that TLYS currently has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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