Back to top

Analyst Blog

Shares of  V.F. Corporation (VFC - Analyst Report) crafted a new 52-week high of $174.76 on Tuesday, Apr 23, 2013 based on the company’s consistent positive earnings surprise trend, strong organic revenue growth, impressive management guidance and strategies to expand its global reach.

This home improvement retailer eventually closed trade at $173.82 on Apr 23, recording a year-to-date return of 15.6%. Average volume of shares traded over the last 3 months stands at approximately 740K. Moreover, the company currently trades at a forward P/E of 16.1x, a 7.3% premium to the industry average of 15.0x.

If we look at the company’s earnings surprise history, this Zacks Rank #3 (Hold) stock has outperformed the Zacks Consensus Estimate in the past 13 quarters. The average positive surprise in the trailing 13 quarters comes to 10.3%.

V.F. Corp.'s diversified brand portfolio as well as its approach to brand management, which remains focused on further developing its brands, positions the company well above its peers. We believe that given the strength of many of its brands and opportunities with regard to distribution, the company is set for significant long-term growth.

In Feb 2013, V.F. Corp. reported robust fourth-quarter 2012 earnings results primarily driven by strong top-line growth along with improved margins. The fourth-quarter 2012 earnings of $3.07 per share exhibited an improvement of over 32% from the comparable year-ago quarter as well as the Zacks Consensus Estimate of $3.03.

V.F. Corp’s total sales grew 4% to $3.003 billion in the quarter but fell short of the Zacks Consensus Estimate of $3.072 billion.

Given the solid fourth-quarter results, the company expects 2013 revenue to increase 6% to $11.5 billion. Gross and operating margins are anticipated to expand by 100 basis points.

Based on these forecasts, V.F. Corp. expects its adjusted earnings for 2013 to be $10.70 per share compared with $9.63 in 2012. Currently, the Zacks Consensus Estimate stands at $10.81 per share, which is substantially above the company’s guidance.

Apart from strong fourth-quarter results, V.F. Corp.’s growth story looks compelling. We believe that the company’s sustained focus on strategic acquisitions, along with expanding global operations, bodes well for future growth.

Besides V.F. Corp., companies such as The Home Depot Inc. (HD - Analyst Report), Nike Inc. (NKE - Analyst Report) and Rite Aid Corp. (RAD - Analyst Report) achieved new 52-week highs of $74.59, $61.93 and $2.52, respectively, on Tuesday, Apr 23.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%