) touched a new 52-week high of $245.79 at the close of trade on
Dec 20, 2013, beating its previous high of $238.25 attained on
Dec 2. The shares of this Zacks Rank #3 (Hold) company have been
gaining momentum, driven by the company's sustained focus on
geographic expansion, a disciplined capital strategy and
effective implementation of long-term growth strategies. Further,
V.F. Corp.'s consistently positive earnings surprise trend,
robust organic revenue growth and strong guidance instills
confidence in the stock.
This year, shares of VF Corp. have amassed a year-to-date return
of 63.5%. Average volume of shares traded over the last three
months was approximately 587.4K. Moreover, the company currently
trades at a forward P/E of 22.4x, a 22.4% premium to the peer
group average of 18.3x.
V.F. Corporation's diversified brand portfolio positions the
company well above its peers to generate above-average industry
growth and sustain itself in the current challenging environment.
Moreover, the company is aggressively seeking to expand its
international operations, particularly in Asia Pacific, which is
one of the fastest growing regions. In China, the company plans
to increase its store count to 6,000 over a period of 5 years
from approximately 2,300 stores at present.
Going forward, V.F Corporation expects to increase its
international operations contribution toward total revenue to 38%
in 2013 and 43% by 2017. We believe that the company's sustained
focus on expanding its international operation will boost its top
line in the long run, while reducing the risk of operating in a
V.F. Corporation has always maintained a disciplined capital
allocation strategy, focused on making investments to develop its
business, while using the excess cash to enhance shareholder
returns through dividend payouts and share buybacks. The
company's strong cash generation ability enables it to reduce
long-term debts and return cash to shareholders.
The company's sound capital position was evident from its
recently approved four-for-one stock split and a 21% hike
in quarterly cash dividend to $1.05 per share, both of which were
payable on Dec 20.
With promising top-line growth and margin expansion, V.F.
Corporation appears to be an attractive option for investors in
the near future. The company has surpassed the Zacks Consensus
Estimate for the past 16 consecutive quarters and is expected to
continue with its upbeat performance, going forward.
Management's impressive guidance for 2013 enhances the company's
growth prospects. V.F. Corporation reiterated its adjusted
earnings guidance for 2013 at $10.85 per share, based on
anticipated revenue growth of 6% and gross margin expansion of
nearly 150 basis points (bps).
Apart from V.F. Corp, other stocks such as
The Walt Disney Company
Foot Locker Inc.
Under Armour Inc.
) achieved new 52-week highs of $73.56, $41.12 and $87.92,
respectively, on Dec 20, 2013.
DISNEY WALT (DIS): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis
UNDER ARMOUR-A (UA): Free Stock Analysis
V F CORP (VFC): Free Stock Analysis Report
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