Why L Brands Stock Surged Today
The stock of L Brands (NYSE: LB) soared more than 12% on Tuesday despite receiving a credit downgrade from ratings agency Moody's, which cited the rising likelihood that its deal to sell controlling interest in the Victoria's Secret brand would not be completed.
A downgrade with the likelihood of default is not typically what sends your stock soaring, but investors may be heartened by the prospects of the country's economy reopening, which would allow retailers like L Brands to start generating revenue again.
Image source: L Brands.
Source Fool.com
