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V.F. (VFC) Gains As Market Dips: What You Should Know

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In the latest trading session, V.F. (VFC - Free Report) closed at $19.59, marking a +0.56% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 0.51% in the past month. In that same time, the Consumer Discretionary sector lost 3.82%, while the S&P 500 gained 0.58%.

Investors will be hoping for strength from V.F. as it approaches its next earnings release. On that day, V.F. is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 8.22%. Meanwhile, our latest consensus estimate is calling for revenue of $3.02 billion, down 1.96% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $11.51 billion. These totals would mark changes of -1.9% and -0.84%, respectively, from last year.

Any recent changes to analyst estimates for V.F. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. V.F. is currently a Zacks Rank #3 (Hold).

Investors should also note V.F.'s current valuation metrics, including its Forward P/E ratio of 9.44. For comparison, its industry has an average Forward P/E of 12.38, 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 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.29 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 210, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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