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4 Factors that Make PVH Corp (PVH) a Key Investment Option
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PVH Corp. (PVH - Free Report) appears to be a sound bet, given its robust earnings history, favorable estimate revisions, solid bull-run and impressive fundamentals. Backed by these factors, the company carries a Zacks Rank #2 (Buy). So, let’s take a deeper look of these parameters, which have been driving the company with long-term earnings growth rate of 11.2%.
Robust Earnings History & Outlook
We note that PVH Corp. appears compelling from the earnings perspective, as the company kept its positive surprise streak alive for the 12th straight time in the recently reported first-quarter fiscal 2017. Notably, in the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 6.5%.
A glimpse of the first quarter reveals that both the top and bottom line advanced year over year, alongside surpassing estimates. In fact, sales also marked its third straight surprise. Results gained from solid momentum at the company’s premium Calvin Klein and Tommy Hilfiger brands, particularly in the international regions. The superb quarter also encouraged management to raise its fiscal 2017 outlook, alongside issuing an impressive view for the second quarter. That said, we believe that PVH Corp. is well positioned to maintain its upbeat performance in future.
Favorable Estimate Revisions
Following a sturdy performance and encouraging outlook, the Zacks Consensus Estimate witnessed an uptrend as analysts raised their estimates.
Analysts polled by Zacks are convinced about the stock’s upbeat performance in the future. Over the past 30 days, the Zacks Consensus Estimate of $1.63 and $7.47 for the second quarter and fiscal 2017 witnessed a jump of 11 cents and 8 cents, respectively. Clearly, a positive sentiment is palpable among analysts covering the stock.
While this New York-based company has gained 3.1% since the quarterly outcome, the stock has significantly outperformed the Zacks categorized Textile – Apparel Manufacturing industry in the past one year. Evidently, PVH Corp.’s shares jumped 9.2% in the past one year, compared with the industry’s decline of 19%. This is mainly attributable to the company’s robust show even amid an uncertain macro environment. That, in itself, speaks volumes about the company’s ongoing prospects.
Apart from the aforementioned factors, PVH Corp. has been riding on its strong fundamentals, which are discussed below.
Strong Fundamentals
PVH Corp.’s diversified brand portfolio allows it to stay ahead of its peers to generate above-average industry growth and sustain its position in the current challenging environment. The company’s approach to brand management facilitates each of its brands to develop further through efficient marketing strategies, financial control and operating leverage. Based on the strength of many of its brands, particularly Tommy Hilfiger and Calvin Klein, along with opportunities with regard to distribution, we believe that the company is poised for long-term growth.
Further, the company has been undertaking significant steps to keep pace with the evolving retail trends and integrate consumers’ changing preferences into its operating decisions. In fact, these constant endeavors have helped the company to stay afloat even in a challenging retail landscape.
Some recent evidences of PVH’s growth efforts include its latest agreement with Li & Fung, which is likely to enhance the former’s supply-chain network. Moreover, the company recently inked a deal to acquire True&Co, which is a direct-to-consumer intimate apparel online retailer. This deal underscores PVH’s focus on making innovations and developing its omnichannel operations to enrich consumer experience.
All said, we believe that PVH Corp. is moving in the right direction and these strategies will help it to exploit opportunities in the lifestyle apparel market. This, combined with the company’s Value Style Score of “B” signal favorable future prospects for the company.
Other Stocks in PVH Corp’s Space
A top-ranked stock in the same industry is Cherokee Inc. with a Zacks Rank #1 (Strong Buy). Investors can also consider Tailored Brands, Inc. and Gildan Activewear Inc. (GIL - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cherokee has an average positive earnings surprise of 165.7% in the trailing four quarters. The stock also has a long-term growth rate of 15%.
Gildan Activewear, with long-term earnings per share growth rate of 12.3%, has delivered positive earnings surprise in the last two quarters.
Tailored Brands has a long-term growth rate of 15%. Also, it has witnessed positive estimate revisions for the current fiscal, over the past 30 days.
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4 Factors that Make PVH Corp (PVH) a Key Investment Option
PVH Corp. (PVH - Free Report) appears to be a sound bet, given its robust earnings history, favorable estimate revisions, solid bull-run and impressive fundamentals. Backed by these factors, the company carries a Zacks Rank #2 (Buy). So, let’s take a deeper look of these parameters, which have been driving the company with long-term earnings growth rate of 11.2%.
Robust Earnings History & Outlook
We note that PVH Corp. appears compelling from the earnings perspective, as the company kept its positive surprise streak alive for the 12th straight time in the recently reported first-quarter fiscal 2017. Notably, in the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 6.5%.
A glimpse of the first quarter reveals that both the top and bottom line advanced year over year, alongside surpassing estimates. In fact, sales also marked its third straight surprise. Results gained from solid momentum at the company’s premium Calvin Klein and Tommy Hilfiger brands, particularly in the international regions. The superb quarter also encouraged management to raise its fiscal 2017 outlook, alongside issuing an impressive view for the second quarter. That said, we believe that PVH Corp. is well positioned to maintain its upbeat performance in future.
Favorable Estimate Revisions
Following a sturdy performance and encouraging outlook, the Zacks Consensus Estimate witnessed an uptrend as analysts raised their estimates.
Analysts polled by Zacks are convinced about the stock’s upbeat performance in the future. Over the past 30 days, the Zacks Consensus Estimate of $1.63 and $7.47 for the second quarter and fiscal 2017 witnessed a jump of 11 cents and 8 cents, respectively. Clearly, a positive sentiment is palpable among analysts covering the stock.
PVH Corp. Price and Consensus
PVH Corp. Price and Consensus | PVH Corp. Quote
Stock Movement
While this New York-based company has gained 3.1% since the quarterly outcome, the stock has significantly outperformed the Zacks categorized Textile – Apparel Manufacturing industry in the past one year. Evidently, PVH Corp.’s shares jumped 9.2% in the past one year, compared with the industry’s decline of 19%. This is mainly attributable to the company’s robust show even amid an uncertain macro environment. That, in itself, speaks volumes about the company’s ongoing prospects.
Apart from the aforementioned factors, PVH Corp. has been riding on its strong fundamentals, which are discussed below.
Strong Fundamentals
PVH Corp.’s diversified brand portfolio allows it to stay ahead of its peers to generate above-average industry growth and sustain its position in the current challenging environment. The company’s approach to brand management facilitates each of its brands to develop further through efficient marketing strategies, financial control and operating leverage. Based on the strength of many of its brands, particularly Tommy Hilfiger and Calvin Klein, along with opportunities with regard to distribution, we believe that the company is poised for long-term growth.
Further, the company has been undertaking significant steps to keep pace with the evolving retail trends and integrate consumers’ changing preferences into its operating decisions. In fact, these constant endeavors have helped the company to stay afloat even in a challenging retail landscape.
Some recent evidences of PVH’s growth efforts include its latest agreement with Li & Fung, which is likely to enhance the former’s supply-chain network. Moreover, the company recently inked a deal to acquire True&Co, which is a direct-to-consumer intimate apparel online retailer. This deal underscores PVH’s focus on making innovations and developing its omnichannel operations to enrich consumer experience.
All said, we believe that PVH Corp. is moving in the right direction and these strategies will help it to exploit opportunities in the lifestyle apparel market. This, combined with the company’s Value Style Score of “B” signal favorable future prospects for the company.
Other Stocks in PVH Corp’s Space
A top-ranked stock in the same industry is Cherokee Inc. with a Zacks Rank #1 (Strong Buy). Investors can also consider Tailored Brands, Inc. and Gildan Activewear Inc. (GIL - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cherokee has an average positive earnings surprise of 165.7% in the trailing four quarters. The stock also has a long-term growth rate of 15%.
Gildan Activewear, with long-term earnings per share growth rate of 12.3%, has delivered positive earnings surprise in the last two quarters.
Tailored Brands has a long-term growth rate of 15%. Also, it has witnessed positive estimate revisions for the current fiscal, over the past 30 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>