) touched a new 52-week high of $226.85 on Monday, Nov 18, 2013,
beating its previous high of $220.38 attained on Nov 5, 2013. The
shares of this Zacks Rank #3 (Hold) stock eventually closed trade
at $224.44. The stock has gained momentum since the company
announced robust third-quarter 2013 results, along with a 4:1
stock split and a 21% hike in the quarterly dividend. The shares
of this global apparel retailer have been performing very well so
far this year, amassing a year-to-date return of 49.3%.
Average volume of shares traded over the last 3 months was
approximately 566.2K. Moreover, the company currently trades at a
forward P/E of 20.5x, a 10.8% premium to the peer group average
of 18.5x. The last traded price is 1.5% below the Zacks Consensus
average analyst price target of $227.77. Additionally, the
company's long-term estimated EPS growth rate is 12.2%.
Investors became more optimistic on the stock after the company
reported quarterly earnings per share of $3.91, surpassing the
Zacks Consensus Estimate by 3.7% and rising 11.1% from the
V.F. Corp.'s total revenue of $3,266.7 million grew 4.7% from
$3,119.6 million in the year-ago period, on the back of robust
growth in Outdoor & Action Sports, Jeanswear and
International as well as Direct-to-Consumer revenues.
Further, the company's announcement of a 21% hike in quarterly
dividend boosted the stock. The company will pay a dividend of
$1.05 per share on a pre-split basis (recently, the company
approved a four-for-one stock split) to be payable on Dec 20,
2013 to shareholders of record date as of Dec 10, 2013.
V.F. Corp's history of positive earnings surprises make investors
optimistic about the stock. We observe that the company has
beaten the Zacks Consensus Estimate in the past 4 quarters by an
average of 6.4%.
Going forward, we believe that with its operational efficiencies,
a formidable brand portfolio and constant product innovation,
V.F. Corp is well positioned to generate healthy sales. The
company's exclusive assortments remain popular among consumers
and provide a competitive edge.
Apart from V.F. Corporation, other retail stocks such as
Dick's Sporting Goods Inc.
) achieved new 52-week highs of $69.95, $56.72 and $51.24,
respectively, on Nov 18, 2013.
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