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Levi Strauss (LEVI) Registers a Bigger Fall Than the Market: Important Facts to Note

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Levi Strauss (LEVI - Free Report) closed the latest trading day at $18.94, indicating a -1.81% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.89%. Elsewhere, the Dow lost 0.44%, while the tech-heavy Nasdaq lost 1.67%.

The jeans maker's shares have seen an increase of 10.23% over the last month, surpassing the Retail-Wholesale sector's gain of 2.93% and the S&P 500's gain of 2.17%.

The upcoming earnings release of Levi Strauss will be of great interest to investors. The company is expected to report EPS of $0.33, up 17.86% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.55 billion, showing a 2.7% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.25 per share and a revenue of $6.31 billion, indicating changes of +13.64% and +2.12%, respectively, from the former year.

Investors should also note any 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Levi Strauss currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Levi Strauss currently has a Forward P/E ratio of 15.49. This expresses a discount compared to the average Forward P/E of 16.47 of its industry.

We can also see that LEVI currently has a PEG ratio of 1.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.86.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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