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Strength Seen in V.F. (VFC): Can Its 5.3% Jump Turn into More Strength?

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V.F. (VFC - Free Report) shares soared 5.3% in the last trading session to close at $15.79. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.9% gain over the past four weeks.

V.F. Corp.'s stock rally reflects improving business fundamentals, stronger operational execution and growing confidence in its transformation strategy. The company is gaining traction from its Reinvent initiatives, cost discipline and renewed focus on profitable growth. Strength across its Outdoor segment, particularly The North Face and Timberland, alongside encouraging performances from Altra and Smartwool, is supporting revenue momentum. Improving direct-to-consumer sales, digital investments and disciplined inventory management are further strengthening its operating foundation. Management's raised fiscal 2027 revenue outlook and sustained margin expansion targets reinforce confidence in its recovery trajectory, although continued weakness at Vans remains a concern.

This maker of brands such as Vans, North Face and Timberland is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -1.9%. Revenues are expected to be $2.69 billion, down 3.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For V.F., the consensus EPS estimate for the quarter has been revised 1% 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 VFC 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 >>>>

V.F. belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, Columbia Sportswear (COLM - Free Report) , closed the last trading session 1.2% lower at $56.34. Over the past month, COLM has returned 0.2%.

Columbia Sportswear's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.27. Compared to the company's year-ago EPS, this represents a change of -9.9%. Columbia Sportswear currently boasts a Zacks Rank of #3 (Hold).

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