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Why V.F. (VFC) Outpaced the Stock Market Today

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V.F. (VFC - Free Report) closed at $12.93 in the latest trading session, marking a +1.57% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.69%.

Shares of the maker of brands such as Vans, North Face and Timberland have depreciated by 11.41% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 6.17%, and the S&P 500's loss of 2.85%.

The investment community will be closely monitoring the performance of V.F. in its forthcoming earnings report. The company is predicted to post an EPS of $0.51, indicating a 1.92% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.7 billion, indicating a 3.67% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.08 per share and a revenue of $9.56 billion, signifying shifts of +31.71% and -0.51%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for V.F. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.83% higher. Right now, V.F. possesses a Zacks Rank of #3 (Hold).

With respect to valuation, V.F. is currently being traded at a Forward P/E ratio of 11.78. This signifies a discount in comparison to the average Forward P/E of 14.85 for its industry.

Investors should also note that VFC has a PEG ratio of 0.91 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 1.9.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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