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

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Tilly's (TLYS - Free Report) closed at $16.18 in the latest trading session, marking a -0.98% move from the prior day. This change lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.72%.

Coming into today, shares of the clothing and accessories retailer had lost 7% in the past month. In that same time, the Retail-Wholesale sector lost 1.06%, while the S&P 500 lost 2.09%.

TLYS will be looking to display strength as it nears its next earnings release, which is expected to be November 28, 2018. On that day, TLYS is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 23.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $149.55 million, down 2.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.89 per share and revenue of $599.47 million, which would represent changes of +36.92% and +3.91%, respectively, from the prior 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.3% lower. TLYS is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, TLYS is holding a Forward P/E ratio of 18.46. This represents a premium compared to its industry's average Forward P/E of 15.93.

Investors should also note that TLYS has a PEG ratio of 1.68 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.55 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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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