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Levi Strauss (LEVI) Stock Dips While Market Gains: Key Facts

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Levi Strauss (LEVI - Free Report) closed at $17.52 in the latest trading session, marking a -0.9% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.51%.

The jeans maker's stock has dropped by 7.53% in the past month, falling short of the Retail-Wholesale sector's loss of 6.2% and the S&P 500's loss of 4.45%.

Market participants will be closely following the financial results of Levi Strauss in its upcoming release. It is anticipated that the company will report an EPS of $0.33, marking a 17.86% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, up 2.7% from the year-ago period.

LEVI's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $6.31 billion. These results would represent year-over-year changes of +13.64% and +2.12%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Levi Strauss. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Levi Strauss is currently a Zacks Rank #3 (Hold).

With respect to valuation, Levi Strauss is currently being traded at a Forward P/E ratio of 14.2. This represents a discount compared to its industry's average Forward P/E of 14.84.

We can additionally observe that LEVI currently boasts a PEG ratio of 1.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.67.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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