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Have you been paying attention to shares of PVH (PVH - Free Report) ? Shares have been on the move with the stock up 14% over the past month. PVH hit a new 52-week high of $162.79 in the previous session. PVH has gained 18.3% since the start of the year compared to the 0.3% move for the Consumer Discretionary sector and the 8.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on March 28, 2018, PVH reported EPS of $1.58 versus.the Zacks Consensus Estimate of $1.48 while it beat the consensus revenue estimate by 6.56%.
For the current fiscal year, PVH is expected to post earnings of $9.1 per share on $9.58 billion in revenues. This represents a 14.61% change in EPS on a 7.48% change in revenues. For the next fiscal year, the company is expected to earn $10.4 per share on $9.97 billion in revenues. This represents a year-over-year change of 14.34% and 4%, respectively.
Valuation Metrics
PVH may be at a 52-week high right now, but what might the future hold for PVH? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
PVH has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 1.37. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, PVH currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if PVH fits the bill. Thus, it seems as though PVH shares could have a bit more room to run in the near term.
How Does PVH Stack Up to the Competition?
Shares of PVH have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including G-III Apparel Group, LTD. (GIII - Free Report) , Columbia Sportswear Company (COLM - Free Report) , and Ralph Lauren Corporation (RL - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PVH, even beyond its own solid fundamental situation.
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PVH Hits Fresh Highs: Is There Still Room to Run?
Have you been paying attention to shares of PVH (PVH - Free Report) ? Shares have been on the move with the stock up 14% over the past month. PVH hit a new 52-week high of $162.79 in the previous session. PVH has gained 18.3% since the start of the year compared to the 0.3% move for the Consumer Discretionary sector and the 8.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on March 28, 2018, PVH reported EPS of $1.58 versus.the Zacks Consensus Estimate of $1.48 while it beat the consensus revenue estimate by 6.56%.
For the current fiscal year, PVH is expected to post earnings of $9.1 per share on $9.58 billion in revenues. This represents a 14.61% change in EPS on a 7.48% change in revenues. For the next fiscal year, the company is expected to earn $10.4 per share on $9.97 billion in revenues. This represents a year-over-year change of 14.34% and 4%, respectively.
Valuation Metrics
PVH may be at a 52-week high right now, but what might the future hold for PVH? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
PVH has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 1.37. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
PVH Corp. Price and Consensus
PVH Corp. Price and Consensus | PVH Corp. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, PVH currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if PVH fits the bill. Thus, it seems as though PVH shares could have a bit more room to run in the near term.
How Does PVH Stack Up to the Competition?
Shares of PVH have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also solid potential picks, including G-III Apparel Group, LTD. (GIII - Free Report) , Columbia Sportswear Company (COLM - Free Report) , and Ralph Lauren Corporation (RL - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PVH, even beyond its own solid fundamental situation.