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Tilly's (TLYS) Gains But Lags Market: What You Should Know

Zacks Equity Research

Tilly's (TLYS) closed at $9.87 in the latest trading session, marking a +0.92% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.34%.

Coming into today, shares of the clothing and accessories retailer had lost 6.41% in the past month. In that same time, the Retail-Wholesale sector lost 3.08%, while the S&P 500 lost 1.17%.

Wall Street will be looking for positivity from TLYS as it approaches its next earnings report date. On that day, TLYS is projected to report earnings of $0.21 per share, which would represent a year-over-year decline of 12.5%. Meanwhile, our latest consensus estimate is calling for revenue of $154.67 million, up 5.34% from the prior-year quarter.

TLYS's full-year Zacks Consensus Estimates are calling for earnings of $0.83 per share and revenue of $625.01 million. These results would represent year-over-year changes of +3.75% and +4.43%, respectively.

Any recent changes to analyst estimates for TLYS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TLYS is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note TLYS's current valuation metrics, including its Forward P/E ratio of 11.75. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.75.

Meanwhile, TLYS's PEG ratio is currently 1.07. 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.28 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow TLYS in the coming trading sessions, be sure to utilize Zacks.com.


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