| L Brands is a holding company. Through its subsidiaries, Co. is focused on home fragrance products, body care, soaps and sanitizers, women's intimate and other apparel, and personal and beauty care products. Co. sells its merchandise through Co.-operated specialty retail stores, other channels and its websites. Co.'s segments: Bath & Body Works, which sells products under the Bath & Body Works, White Barn, C.O. Bigelow and other brand names, is a specialty retailers of body care, home fragrance products, soaps and sanitizers; Victoria's Secret, which is a specialty retailer of women's intimate and other apparel with fashion-inspired collections and prestige fragrances. |
When researching a stock like L Brands, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from LB Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for LB stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting LB RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue.