Back to top

Image: Bigstock

Why the Market Dipped But Levi Strauss (LEVI) Gained Today

Read MoreHide Full Article

In the latest market close, Levi Strauss (LEVI - Free Report) reached $22.78, with a +0.71% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.74%. Elsewhere, the Dow lost 1.06%, while the tech-heavy Nasdaq lost 0.58%.

The jeans maker's shares have seen an increase of 6.6% over the last month, surpassing the Retail-Wholesale sector's gain of 1.83% and the S&P 500's gain of 4.27%.

The upcoming earnings release of Levi Strauss will be of great interest to investors. The company is expected to report EPS of $0.11, up 175% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.45 billion, up 8.4% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.27 per share and revenue of $6.36 billion, indicating changes of +15.45% and +2.88%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Levi Strauss. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained steady. Levi Strauss is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Levi Strauss's current valuation metrics, including its Forward P/E ratio of 17.86. This represents a premium compared to its industry's average Forward P/E of 17.16.

One should further note that LEVI currently holds a PEG ratio of 1.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow LEVI in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Levi Strauss & Co. (LEVI) - free report >>

Published in