) touched a new 52-week high of $204.94 on Friday, Sep 20, 2013
and eventually closed trade at $203.32. The stock has gained
momentum since the company announced initiatives and strategies
to enhance its performance amid a soft economic scenario. This
global apparel retailer has amassed a year-to-date return of
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Average volume of shares traded over the last 3 months was
approximately 488.2K. Moreover, the company currently trades at a
forward P/E of 18.6x, a 5.8% premium to the peer group average of
17.58x. The last traded price is nearly 1.0% below the Zacks
Consensus average analyst price target of $205.29. Additionally,
the company's long-term estimated earnings per share (EPS) growth
rate is 12.3%.
Investors continue to remain optimistic about this Zacks Rank #2
(Buy) stock after the company declared the opening of three
Global Innovation Centers to concentrate on developing
revolutionary product innovations in technical apparel, footwear
The upsurge in stock also reflects the company's positive
earnings momentum. We observe that V.F. Corp. has beaten the
Zacks Consensus Estimate in the past 10 quarters by an average of
7.5%. In the last concluded the earnings per share outdid the
Zacks Consensus Estimate by 8.6% and provided an impressive
guidance for fiscal 2013.
Adjusted earnings of $1.27 per share came above $1.11 earned in
the year-ago quarter as well as the Zacks Consensus Estimate of
$1.17. Following better-than-expected results, V.F. Corp. raised
its fiscal 2013 earnings guidance to $10.85 per share from
$10.75, forecasted earlier.
Earlier, V.F. Corp had outlined its key financial targets through
2017 at an investor meet held on Jun 11 that also helped the
stock gaining momentum. Its announced goals are aimed at driving
strong cash flow, and consequently funding acquisitions,
dividends and share repurchases.
As part of its key financial targets, V.F. Corp. expects to
increase revenues to $17.3 billion by 2017, recording a 5-year
compounded annual growth rate (CAGR) of 10% - including 8%
organic growth and 2% growth from acquisitions. Earnings per
share through 2017 are projected to reach $18.00, reflecting a
5-year CAGR of 13%.
V.F. Corp.'s diversified brand portfolio and its brand management
- with focus on developing its brands further - position the
company more advantageously than its peers. Given the strength of
many of its brands and the opportunities in distribution, we
believe that V.F. Corp. is well poised for long-term growth.
Apart from V.F. Corp., other retail stocks such as
Boston Beer Co. Inc
Fresh Del Monte Produce Inc.
) achieved new 52-week highs of $250.00, $28.12 and $30.82,
respectively, on Sep 20, 2013.