Back to top

Image: Bigstock

V.F. (VFC) Advances But Underperforms Market: Key Facts

Read MoreHide Full Article

The most recent trading session ended with V.F. (VFC - Free Report) standing at $17.62, reflecting a +0.23% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.45%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.84%.

Heading into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 5.97% over the past month, outpacing the Consumer Discretionary sector's gain of 3.49% and the S&P 500's gain of 2.54% in that time.

Investors will be eagerly watching for the performance of V.F. in its upcoming earnings disclosure. In that report, analysts expect V.F. to post earnings of $0.44 per share. This would mark a year-over-year decline of 30.16%. At the same time, our most recent consensus estimate is projecting a revenue of $2.84 billion, reflecting a 6.48% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.73 per share and revenue of $10.16 billion, indicating changes of -1.35% and -2.86%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for V.F. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.72% lower. V.F. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note V.F.'s current valuation metrics, including its Forward P/E ratio of 24.21. This expresses a premium compared to the average Forward P/E of 16.32 of its industry.

Also, we should mention that VFC has a PEG ratio of 1.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. VFC's industry had an average PEG ratio of 1.88 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 30% of all industries, numbering over 250.

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 VFC 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:


V.F. Corporation (VFC) - free report >>

Published in