In the latest trading session, V.F. (VFC) closed at $16.30, marking a -3.15% move from the previous day. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq lost 0.8%.
The stock of maker of brands such as Vans, North Face and Timberland has risen by 2.56% in the past month, leading the Consumer Discretionary sector's loss of 1.82% and the S&P 500's loss of 1.43%.
Investors will be eagerly watching for the performance of V.F. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.22, reflecting a 8.33% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.68 billion, indicating a 4.85% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.1 per share and a revenue of $9.52 billion, representing changes of +34.15% and -0.88%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for V.F. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% lower. Currently, V.F. is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, V.F. is currently exchanging hands at a Forward P/E ratio of 15.3. Its industry sports an average Forward P/E of 15.7, so one might conclude that V.F. is trading at a discount comparatively.
It is also worth noting that VFC currently has a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
