Levi Strauss (LEVI) closed at $17.33 in the latest trading session, marking a -1.25% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.27% for the day.
The jeans maker's stock has dropped by 1.4% in the past month, falling short of the Retail-Wholesale sector's gain of 4.25% and the S&P 500's gain of 6.9%.
The investment community will be paying close attention to the earnings performance of Levi Strauss in its upcoming release. The company is predicted to post an EPS of $0.13, indicating a 18.75% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.37 billion, reflecting a 5.23% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.23 per share and a revenue of $5.97 billion, indicating changes of -1.6% and -6.11%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Levi Strauss. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Levi Strauss is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Levi Strauss is holding a Forward P/E ratio of 14.27. This denotes a discount relative to the industry average Forward P/E of 17.49.
We can additionally observe that LEVI currently boasts a PEG ratio of 1.65. 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. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.9 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Levi Strauss & Co. (LEVI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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