Back to top

Image: Bigstock

V.F. (VFC) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

V.F. (VFC - Free Report) closed the most recent trading day at $72.39, moving +0.96% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 0.04% in the past month. In that same time, the Consumer Discretionary sector lost 1.28%, while the S&P 500 gained 4.32%.

V.F. will be looking to display strength as it nears its next earnings release. On that day, V.F. is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 30.11%. Our most recent consensus estimate is calling for quarterly revenue of $3.62 billion, up 21.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $11.99 billion. These totals would mark changes of +142.75% and +29.79%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for V.F.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. V.F. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, V.F. currently has a Forward P/E ratio of 22.53. This valuation marks a premium compared to its industry's average Forward P/E of 15.91.

It is also worth noting that VFC currently has a PEG ratio of 0.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel was holding an average PEG ratio of 1.08 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


V.F. Corporation (VFC) - free report >>

Published in