Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest close session, V.F. (VFC - Free Report) was up +1.72% at $17.14. The stock outpaced the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 31.74% in the past month. In that same time, the Consumer Discretionary sector gained 0.85%, while the S&P 500 gained 1.46%.

Investors will be eagerly watching for the performance of V.F. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2026. The company is expected to report EPS of $0.51, down 1.92% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.69 billion, indicating a 3.9% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.1 per share and a revenue of $9.52 billion, indicating changes of +34.15% and -0.87%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for V.F. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

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, 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 2.08% higher. V.F. currently has a Zacks Rank of #3 (Hold).

Looking at valuation, V.F. is presently trading at a Forward P/E ratio of 15.3. For comparison, its industry has an average Forward P/E of 16.13, which means V.F. is trading at a discount to the group.

It is also worth noting that VFC currently has a PEG ratio of 0.88. 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. VFC's industry had an average PEG ratio of 1.93 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Published in