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Here's Why You Should Add PVH Corp. to Your Portfolio Now
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PVH Corp. (PVH - Free Report) seems to be riding on better-than-expected second-quarter fiscal 2017 results, robust surprise history, healthy cash flow and other strategic initiatives. Further, this Zacks Rank #2 (Buy) stock has a VGM Score of B, with a long-term earnings growth rate of 12.6%, which looks encouraging.
Notably, PVH Corp.’s shares rallied nearly 5.4% since its fiscal second-quarter earnings, reported on Aug 23. In fact, the stock has surged 40.3% in the last six months, outperforming the Zacks Textile - Apparel industry’s gain of 9.4%. Currently, the industry is placed at the top 41% of the Zacks classified industries (105 out of 256). Meanwhile, the broader Consumer Discretionary sector gained 6.1% and is placed at the top 38% of the Zacks classified sectors (six out of 16).
Let’s Dive Deep
Q2 Beat & Robust Outlook
With second-quarter fiscal 2017, PVH Corp.’s sales topped estimates for the fourth consecutive quarter while earnings retained positive surprise trend for the 13th straight time. Results continued to gain from solid momentum at its Calvin Klein and Tommy Hilfiger brands, particularly in the international regions. (Read: PVH Corp Jumps on Q2 Earnings & Sales Beat, Ups View)
Driven by the solid quarterly results, improvement in foreign currency rates and continued strength across its brands, management expects to deliver a robust second-half performance. Consequently, it raised earnings outlook for fiscal 2017 and envisions it in the range of $7.60-$7.70 per share compared with $7.40-$7.50 expected earlier.
Further, revenues are projected to increase 6% for the fiscal year while currency neutral revenues are expected to grow 5%. Earlier, the company forecasted revenue growth of 3%.
Estimate Revisions
PVH Corp.’s earnings estimates have witnessed solid upward revisions in the last 30 days following the quarterly results. The Zacks Consensus Estimate of $7.71 for fiscal 2017 and $8.65 for fiscal 2018 moved up 16 cents and 29 cents, respectively.
Also, the Zacks Consensus Estimate of $2.91 for the fiscal third quarter has increased 11 cents.
Other Strengths
PVH Corp. has also been undertaking significant steps to keep pace with the evolving retail trends and integrate consumers’ changing preferences into its operating decisions. In fact, these endeavors have helped the company to stay afloat even in a challenging retail landscape. Furthermore, its approach to brand management facilitates each of its brands to develop further through efficient marketing strategies, financial control and operating leverage.
In addition, PVH Corp. boasts a healthy balance sheet, which provides it with financial flexibility to drive growth. It also undertakes shareholder-friendly moves.
Looking for More? Check These Three Trending Picks
Gildan Activewear has a long-term earnings growth rate of 13.5%. Also, its earnings outpaced the Zacks Consensus Estimate by an average of 5.5% in the trailing four quarters.
Guess?, with a long-term earnings growth rate of 17.5%, delivered an average positive earnings surprise of 20.6% in the last four quarters.
Crocs, Inc. has a long-term earnings growth rate of 15%. It pulled off an average positive earnings surprise of 83.9% in the last four quarters.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
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Here's Why You Should Add PVH Corp. to Your Portfolio Now
PVH Corp. (PVH - Free Report) seems to be riding on better-than-expected second-quarter fiscal 2017 results, robust surprise history, healthy cash flow and other strategic initiatives. Further, this Zacks Rank #2 (Buy) stock has a VGM Score of B, with a long-term earnings growth rate of 12.6%, which looks encouraging.
Notably, PVH Corp.’s shares rallied nearly 5.4% since its fiscal second-quarter earnings, reported on Aug 23. In fact, the stock has surged 40.3% in the last six months, outperforming the Zacks Textile - Apparel industry’s gain of 9.4%. Currently, the industry is placed at the top 41% of the Zacks classified industries (105 out of 256). Meanwhile, the broader Consumer Discretionary sector gained 6.1% and is placed at the top 38% of the Zacks classified sectors (six out of 16).
Let’s Dive Deep
Q2 Beat & Robust Outlook
With second-quarter fiscal 2017, PVH Corp.’s sales topped estimates for the fourth consecutive quarter while earnings retained positive surprise trend for the 13th straight time. Results continued to gain from solid momentum at its Calvin Klein and Tommy Hilfiger brands, particularly in the international regions. (Read: PVH Corp Jumps on Q2 Earnings & Sales Beat, Ups View)
Driven by the solid quarterly results, improvement in foreign currency rates and continued strength across its brands, management expects to deliver a robust second-half performance. Consequently, it raised earnings outlook for fiscal 2017 and envisions it in the range of $7.60-$7.70 per share compared with $7.40-$7.50 expected earlier.
Further, revenues are projected to increase 6% for the fiscal year while currency neutral revenues are expected to grow 5%. Earlier, the company forecasted revenue growth of 3%.
Estimate Revisions
PVH Corp.’s earnings estimates have witnessed solid upward revisions in the last 30 days following the quarterly results. The Zacks Consensus Estimate of $7.71 for fiscal 2017 and $8.65 for fiscal 2018 moved up 16 cents and 29 cents, respectively.
PVH Corp. Price, Consensus and EPS Surprise
PVH Corp. Price, Consensus and EPS Surprise | PVH Corp. Quote
Also, the Zacks Consensus Estimate of $2.91 for the fiscal third quarter has increased 11 cents.
Other Strengths
PVH Corp. has also been undertaking significant steps to keep pace with the evolving retail trends and integrate consumers’ changing preferences into its operating decisions. In fact, these endeavors have helped the company to stay afloat even in a challenging retail landscape. Furthermore, its approach to brand management facilitates each of its brands to develop further through efficient marketing strategies, financial control and operating leverage.
In addition, PVH Corp. boasts a healthy balance sheet, which provides it with financial flexibility to drive growth. It also undertakes shareholder-friendly moves.
Looking for More? Check These Three Trending Picks
Other stocks worth considering in the same space are Gildan Activewear Inc. (GIL - Free Report) , Guess?, Inc. (GES - Free Report) and Crocs, Inc. (CROX - Free Report) , all carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gildan Activewear has a long-term earnings growth rate of 13.5%. Also, its earnings outpaced the Zacks Consensus Estimate by an average of 5.5% in the trailing four quarters.
Guess?, with a long-term earnings growth rate of 17.5%, delivered an average positive earnings surprise of 20.6% in the last four quarters.
Crocs, Inc. has a long-term earnings growth rate of 15%. It pulled off an average positive earnings surprise of 83.9% in the last four quarters.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>