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

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V.F. (VFC - Free Report) closed the most recent trading day at $28.15, moving -0.18% from the previous trading session. This change lagged the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, added 0.03%.

Heading into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 15.42% over the past month, lagging the Consumer Discretionary sector's gain of 10.44% and the S&P 500's gain of 5.12% in that time.

V.F. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1, down 25.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.48 billion, down 3.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $11.57 billion. These totals would mark changes of -33.96% and -2.31%, respectively, from last year.

Investors might also notice recent changes 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 company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 14.17% lower within the past month. V.F. is currently a Zacks Rank #4 (Sell).

In terms of valuation, V.F. is currently trading at a Forward P/E ratio of 13.43. This valuation marks a premium compared to its industry's average Forward P/E of 10.19.

Meanwhile, VFC's PEG ratio is currently 4.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.64 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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