V.F. (VFC) closed the most recent trading day at $17.37, moving +2.42% from the previous trading session. This change outpaced the S&P 500’s 0.05% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Heading into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 5.41% over the past month, lagging the Consumer Discretionary sector’s loss of 2.34% and the S&P 500’s loss of 1.42%.
Market participants will be closely following the financial results of V.F. in its upcoming release. On that day, V.F. is projected to report earnings of -$0.22 per share, which would represent year-over-year growth of 8.33%. In the meantime, our current consensus estimate forecasts the revenue to be $1.68 billion, indicating a 4.85% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.1 per share and revenue of $9.52 billion, which would represent changes of +34.15% and -0.88%, respectively, from the prior year.
Any recent changes to analyst estimates for V.F. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.13% lower. At present, V.F. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, V.F. is currently trading at a Forward P/E ratio of 15.42. This expresses a premium compared to the average Forward P/E of 15.39 of its industry.
One should further note that VFC currently holds a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Textile – Apparel stocks are, on average, holding a PEG ratio of 2.14 based on yesterday’s closing prices.
The Textile – Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 37% of all 250+ industries.
