Stock Rating Downgrade
Reflecting eroding fundamentals and low Appreciation Potential, the Value Trend Rating for Designer Brands Inc (NYSE: DBI) weakened recently. DBI’s current Value Trend Rating is D and the prior Rating was C. Details supporting this lower rating are included in our next report.
Recent Price Action
Designer Brands Inc (NYSE: DBI) stock closed at $6.54 on 7/1/20 after a large decline of -3.4%. However, this decline was accompanied by below average trading volume at 70% of normal. The stock has been extremely weak relative to the market over the last nine months and has declined -5.8% during the last week.
Current PriceTarget Research Rating
With future capital returns forecasted to exceed the cost of capital, DBI is expected to continue to be a modest Value Builder.
Designer Brands has a current Value Trend Rating of D (Negative). This rating combines very contradictory signals from two proprietary PTR measures of a stock’s attractiveness. Designer Brands has a good Appreciation Score of 78 but a very low Power Rating of 0, producing the Negative Value Trend Rating.