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Levi Strauss (LEVI) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Levi Strauss (LEVI - Free Report) closed at $17.74, marking a -1.66% move from the previous day. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.39%.

The jeans maker's shares have seen an increase of 12.68% over the last month, surpassing the Retail-Wholesale sector's gain of 5.7% and the S&P 500's gain of 6.69%.

The investment community will be closely monitoring the performance of Levi Strauss in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.13, marking a 18.75% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.37 billion, down 5.23% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.23 per share and revenue of $5.97 billion, which would represent changes of -1.6% and -6.11%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Levi Strauss. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Levi Strauss is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Levi Strauss currently has a Forward P/E ratio of 14.67. This expresses a discount compared to the average Forward P/E of 16.6 of its industry.

It is also worth noting that LEVI currently has a PEG ratio of 1.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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