In the latest trading session, V.F. (VFC) closed at $18.43, marking a -1.18% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.46% for the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.57%.
Heading into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 13.93% over the past month, outpacing the Consumer Discretionary sector's gain of 3.1% and the S&P 500's gain of 4.22%.
The investment community will be closely monitoring the performance of V.F. in its forthcoming earnings report. The company is expected to report EPS of $0.44, down 29.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.8 billion, down 1.21% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $9.43 billion. These totals would mark changes of -2.7% and -2.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for V.F. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 0.39% higher. V.F. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, V.F. is presently being traded at a Forward P/E ratio of 26.08. Its industry sports an average Forward P/E of 18.33, so one might conclude that V.F. is trading at a premium comparatively.
We can additionally observe that VFC currently boasts a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Textile - Apparel industry currently had an average PEG ratio of 3.08 as of yesterday's close.
The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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V.F. Corporation (VFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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