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Strength Seen in PVH (PVH): Can Its 8.4% Jump Turn into More Strength?

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PVH (PVH - Free Report) shares ended the last trading session 8.4% higher at $87.28. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.5% gain over the past four weeks.

PVH Corp’s stock surged after Jefferies upgraded its recommendation to Buy backed by its sales growth potential. Although PVH is facing a challenging operating environment and maintaining a cautious outlook on headwinds in China, Jefferies remains optimistic that the regulatory overhang could be lifted soon—potentially through new licensing agreements or improved trade relations.

PVH Corp is taking proactive cost and efficiency measures to navigate a challenging environment while investing in long-term growth, with a particular focus on China. At the heart of this effort is its multi-year PVH+ Plan, designed to fuel sustainable growth by capitalizing on the company’s core strengths and deepening consumer engagement with its iconic brands, Calvin Klein and TOMMY HILFIGER. The plan is anchored around five strategic pillars: product excellence, consumer engagement, digital leadership, data-driven operations, and efficiency-focused investment. Through this integrated approach, PVH aims to grow its presence in high-demand global markets, enhance brand relevance, and accelerate both digital and direct-to-consumer (D2C) expansion.

This owner of the Calvin Klein and Tommy Hilfiger brands is expected to post quarterly earnings of $2.24 per share in its upcoming report, which represents a year-over-year change of -8.6%. Revenues are expected to be $1.93 billion, down 1.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For PVH, the consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PVH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PVH is part of the Zacks Textile - Apparel industry. Guess (GES - Free Report) , another stock in the same industry, closed the last trading session 0.3% lower at $12.11. GES has returned 25.7% in the past month.

Guess' consensus EPS estimate for the upcoming report has changed -15% over the past month to -$0.51. Compared to the company's year-ago EPS, this represents a change of -88.9%. Guess currently boasts a Zacks Rank of #4 (Sell).


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