V.F. (VFC) Gains As Market Dips: What You Should Know
This story originally appeared on Zacks
V.F. (VFC) closed the most recent trading day at $74.51, moving +0.59% from the previous trading session. This change outpaced the S&P 500’s 0.85% loss on the day. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 0.95% in the past month. In that same time, the Consumer Discretionary sector lost 7.17%, while the S&P 500 lost 0.97%.
Wall Street will be looking for positivity from V.F. as it approaches its next earnings report date. In that report, analysts expect V.F. to post earnings of $1.21 per share. This would mark year-over-year growth of 30.11%. Our most recent consensus estimate is calling for quarterly revenue of $3.62 billion, up 21.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $11.99 billion, which would represent changes of +142.75% and +29.76%, respectively, from the prior year.
Any recent changes to analyst estimates for V.F. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. V.F. is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note V.F.’s current valuation metrics, including its Forward P/E ratio of 23.29. This represents a premium compared to its industry’s average Forward P/E of 16.27.
We can also see that VFC currently has a PEG ratio of 0.83. 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. VFC’s industry had an average PEG ratio of 1.07 as of yesterday’s close.
The Textile – Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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 VFC in the coming trading sessions, be sure to utilize Zacks.com.
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