) touched a new 52-week high of $202.35 on Monday, Aug 5, 2013
and eventually closed trade at $201.15. The stock gained momentum
from the company's better-than expected second-quarter 2013
results and its 5-year initiatives and strategies to boost
shareholder returns. This global apparel retailer has amassed a
year-to-date return of 35.1%.
The average volume of shares traded over the last 3 months was
approximately 487K. Moreover, the company currently trades at a
forward P/E of 18.4x, a 0.5% discount to the peer group average
of 18.49x. The last traded price is 0.6% below the Zacks
Consensus average analyst price target of $202.36. Additionally,
the company's long-term estimated EPS growth rate is 12.3%.
Investors became more optimistic on this Zacks Rank #2 (Buy)
stock after the company reported second-quarter 2013 adjusted
earnings of $1.27 per share, which came above $1.11 earned in the
year-ago quarter as well as the Zacks Consensus Estimate of
V.F. Corp.'s total revenue of $2,220.4 million grew 4.0% compared
with $2,141.8 million in the year-ago period, on the back of
robust growth in Outdoor & Action Sports, international as
well as direct-to-consumer revenues.
Moreover, in June, V.F. Corp had outlined its key financial
targets through 2017 at an investor meet. Its goals aim 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 and record 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%.
The company's history of positive earnings surprises has made
investors optimistic about the stock. We observe that V.F. Corp.
has beaten the Zacks Consensus Estimate in the past 10 quarters
by an average of 7.5%.
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
Best Buy Co., Inc.
Dean Foods Co.
Archer Daniels Midland Co.
) achieved new 52-week highs of $31.73, $11.48 and $37.89,
respectively, on Aug 5, 2013.
ARCHER DANIELS (ADM): Free Stock Analysis
BEST BUY (BBY): Free Stock Analysis Report
DEAN FOODS CO (DF): Free Stock Analysis
V F CORP (VFC): Free Stock Analysis Report
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