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

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In the latest trading session, V.F. (VFC - Free Report) closed at $84.08, marking a +0.45% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, lost 0.81%.

Heading into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 17.33% over the past month, outpacing the Consumer Discretionary sector's gain of 8.87% and the S&P 500's gain of 6.55% in that time.

VFC will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2019. On that day, VFC is projected to report earnings of $0.57 per share, which would represent a year-over-year decline of 14.93%. Meanwhile, our latest consensus estimate is calling for revenue of $3.20 billion, up 4.97% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for VFC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.91% higher. VFC currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, VFC is holding a Forward P/E ratio of 22.34. Its industry sports an average Forward P/E of 16.88, so we one might conclude that VFC is trading at a premium comparatively.

Also, we should mention that VFC has a PEG ratio of 1.97. 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. The Textile - Apparel was holding an average PEG ratio of 1.38 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 46, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow VFC in the coming trading sessions, be sure to utilize Zacks.com.


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