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

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In the latest close session, V.F. (VFC - Free Report) was up +1.26% at $14.45. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.45%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 6.1% in the past month. In that same time, the Consumer Discretionary sector lost 5.62%, while the S&P 500 gained 0.84%.

Analysts and investors alike will be keeping a close eye on the performance of V.F. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.51, marking a 1.92% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.69 billion, reflecting a 3.89% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.08 per share and a revenue of $9.53 billion, signifying shifts of +31.71% and -0.77%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for V.F. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.25% increase. V.F. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, V.F. is presently being traded at a Forward P/E ratio of 13.17. Its industry sports an average Forward P/E of 15.12, so one might conclude that V.F. is trading at a discount comparatively.

We can additionally observe that VFC currently boasts a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 28% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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