V.F. Corp Soars to a New High
) crafted a new 52-week high of $180.01 on Tuesday, May 7, 2013
based on the company's consistent positive earnings surprise
trend, strong organic revenue growth, impressive management
guidance and strategies to expand its global reach.
This home improvement retailer eventually closed trade at $179.95
on May 7, recording a year-to-date return of 19.7%. Average
volume of shares traded over the last 3 months stands at
approximately 667K. Moreover, the company currently trades at a
forward P/E of 16.5x, a 5.1% premium to the industry average of
If we look at the company's earnings surprise history, this Zacks
Rank #2 (Buy) stock has outperformed the Zacks Consensus Estimate
in the past 14 quarters. The average positive surprise in the
trailing 14 quarters comes to 10.5%.
V.F. Corp.'s diversified brand portfolio and its approach to
brand management, which remains focused on further developing its
brands, position the company well above its peers. We believe
that given the strength of many of its brands and opportunities
with regard to distribution, the company is set for significant
Last month, V.F. Corp. reported robust first-quarter 2013
earnings results primarily driven by strong top-line growth and
improved margins. First-quarter earnings of $2.43 per share
exhibited an improvement of over 25.3% from the comparable
year-ago quarter and the Zacks Consensus Estimate of $2.17.
V.F. Corp's total sales grew 2.2% to $2,611.9 million in the
quarter but fell short of the Zacks Consensus Estimate of $2,652
Given the solid first-quarter results, the company expects 2013
revenues to increase 6% to $11.5 billion. Gross and operating
margins are anticipated to expand by 100 basis points.
Based on these forecasts, V.F. Corp. expects its adjusted
earnings for 2013 to rise by 5 cents to $10.75 per share,
compared to the previous forecast of $10.70 per share. Currently,
the Zacks Consensus Estimate stands at $12.25 per share, which is
substantially above the company's guidance.
Apart from strong first-quarter results, V.F. Corp.'s growth
story looks compelling. We believe that the company's sustained
focus on strategic acquisitions, along with expanding global
operations, bode well for future growth.
Besides V.F. Corp., companies such as
Archer Daniels Midland Company
) achieved new 52-week highs of $34.34, $58.66 and $122.80,
respectively, on Tuesday, May 7.
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