In the latest close session, V.F. (VFC) was up +1.26% at $14.45. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.45%.
Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 6.1% in the past month. In that same time, the Consumer Discretionary sector lost 5.62%, while the S&P 500 gained 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of V.F. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.51, marking a 1.92% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.69 billion, reflecting a 3.89% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.08 per share and a revenue of $9.53 billion, signifying shifts of +31.71% and -0.77%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for V.F. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.25% increase. V.F. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, V.F. is presently being traded at a Forward P/E ratio of 13.17. Its industry sports an average Forward P/E of 15.12, so one might conclude that V.F. is trading at a discount comparatively.
We can additionally observe that VFC currently boasts a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Textile – Apparel stocks are, on average, holding a PEG ratio of 1.88 based on yesterday’s closing prices.
