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We expect  V.F. Corporation (VFC - Analyst Report) – one of the world’s largest apparel companies – to beat expectations when it reports second-quarter 2013 earnings on Jul 19.

Why a Likely Positive Surprise?

Our proven model shows that V.F. Corp. may beat earnings because it has the right combination of 2 key components.

Positive Zacks ESP: V.F. Corp. currently has Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +0.86%. This is because the Most Accurate Estimate stands at $1.18 per share, while the Zacks Consensus Estimate is pegged at $1.17 cents.

Zacks #3 Rank (Hold): Note that stocks with a Zacks Rank #1, #2 and #3 have higher chances of beating earnings. The Sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.

The combination of V.F. Corp.’s Zacks Rank #3 (Hold) and Earnings ESP of +0.86% makes us confident of a positive earnings beat on Jul 19.

What is Driving Better-than-Expected Earnings?

V.F. Corp.’s consistent focus on top-line growth, upbeat guidance, initiatives to capitalize on opportunities in emerging markets and focus on core business activities bode well for its future operating performances. Moreover, strong focus on strategic acquisitions and the expansion of global operations will likely drive growth.

V.F. Corp. surpassed the Zacks Consensus Estimate in the trailing 4 quarters with an average surprise of approximately 8.06%.

Other Stocks to Consider

V.F. Corp. is not the only firm looking up this earnings season. Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat.

Deckers Outdoor Corp. (DECK - Analyst Report), Earnings ESP of +13.21% and a Zacks Rank #2 (Buy).

The Gap, Inc. (GPS - Analyst Report), Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).

Rent-A-Center, Inc. (RCII - Analyst Report), Earnings ESP of +1.33% and a Zacks Rank #3 (Hold).

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