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PVH Corp's (PVH) Solid Strategies in Place, Stock on a Roll
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It’s time for investors to take note of PVH Corp.'s (PVH - Free Report) impressive performance on the bourse. Shares of this owner of premium brands like Calvin Klein and Tommy Hilfiger have outperformed the Zacks categorized Textile – Apparel Manufacturing industry considerably on a year-to-date basis. Evidently, this Zacks Rank #3 (Hold) stock has gained 25.6% during this period, while the industry was down 9.9%.
Clearly, PVH Corp. has been gathering solid momentum from its strong fundamentals, spectacular earnings history and strategic growth efforts.
PVH Corp. possesses an impressive brand portfolio which enables it to stay ahead of its peers. This helps the company generate above-average industry growth and sustain its position despite the ongoing challenges. The company’s approach to brand management also allows each of its brands to develop through efficient marketing strategies, financial control and operating leverage.
Based on the strength of many of its brands, along with opportunities with regard to distribution, we believe that the company is poised for long-term growth. The company’s focus on higher-margin businesses has encouraged it to shut down its underperforming Izod retail division. Moreover, having entered into various licensing and partnership deals in the past, the company is on track to concentrate on its other developing brands, in addition to using its resources for several growth opportunities.
PVH Corp. boasts of a healthy balance sheet. The company’s strong operating cash flow has helped in the execution of its long-term strategies such as global expansion, product enhancement and building of operational infrastructure. Moreover, PVH Corp.’s financial strength helps it to make shareholder-friendly moves.
We believe these growth drivers helped the company to post its 10th consecutive earnings beat in the third quarter of fiscal 2016, wherein both the top and bottom lines beat estimates, mainly driven by continued strength in its Calvin Klein and Tommy Hilfiger brands. Further, management raised its earnings per share guidance for fiscal 2016, as it remains confident of its solid business strategies and ongoing investments in top-quality brands.
However, PVH Corp.’s international presence exposes it to the risk of adverse currency movement, which is expected to continue hurting the company’s results in the future. Other headwinds include volatility in the overall retail environment, intense promotions and unpredictable global consumer spending.
Nonetheless, the company’s growth drivers indicate that it is well positioned to maintain the upbeat performance.
Children's Place has an average positive earnings surprise of 36.3% in the trailing four quarters. The stock, with a long-term growth rate of 10.3%, has seen positive estimate revisions in the last 30 days.
Perry Ellis International has witnessed positive estimate revisions for the current fiscal over the past 60 days. Further, the company has an impressive earnings history.
Tailored Brands has delivered back-to-back positive earnings surprises in the last two quarters. Moreover, the company’s long-term growth rate of 17.5% and positive estimate revisions over the past 30 days, bode well.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research.See these stocks free >>
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PVH Corp's (PVH) Solid Strategies in Place, Stock on a Roll
It’s time for investors to take note of PVH Corp.'s (PVH - Free Report) impressive performance on the bourse. Shares of this owner of premium brands like Calvin Klein and Tommy Hilfiger have outperformed the Zacks categorized Textile – Apparel Manufacturing industry considerably on a year-to-date basis. Evidently, this Zacks Rank #3 (Hold) stock has gained 25.6% during this period, while the industry was down 9.9%.
Clearly, PVH Corp. has been gathering solid momentum from its strong fundamentals, spectacular earnings history and strategic growth efforts.
PVH Corp. possesses an impressive brand portfolio which enables it to stay ahead of its peers. This helps the company generate above-average industry growth and sustain its position despite the ongoing challenges. The company’s approach to brand management also allows each of its brands to develop through efficient marketing strategies, financial control and operating leverage.
Based on the strength of many of its brands, along with opportunities with regard to distribution, we believe that the company is poised for long-term growth. The company’s focus on higher-margin businesses has encouraged it to shut down its underperforming Izod retail division. Moreover, having entered into various licensing and partnership deals in the past, the company is on track to concentrate on its other developing brands, in addition to using its resources for several growth opportunities.
PVH Corp. boasts of a healthy balance sheet. The company’s strong operating cash flow has helped in the execution of its long-term strategies such as global expansion, product enhancement and building of operational infrastructure. Moreover, PVH Corp.’s financial strength helps it to make shareholder-friendly moves.
We believe these growth drivers helped the company to post its 10th consecutive earnings beat in the third quarter of fiscal 2016, wherein both the top and bottom lines beat estimates, mainly driven by continued strength in its Calvin Klein and Tommy Hilfiger brands. Further, management raised its earnings per share guidance for fiscal 2016, as it remains confident of its solid business strategies and ongoing investments in top-quality brands.
However, PVH Corp.’s international presence exposes it to the risk of adverse currency movement, which is expected to continue hurting the company’s results in the future. Other headwinds include volatility in the overall retail environment, intense promotions and unpredictable global consumer spending.
Nonetheless, the company’s growth drivers indicate that it is well positioned to maintain the upbeat performance.
Stocks to Consider
Some better-ranked stocks worth considering include The Children's Place, Inc. (PLCE - Free Report) , with a Zacks Rank #1 (Strong Buy), Perry Ellis International, Inc. , Tailored Brands, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Children's Place has an average positive earnings surprise of 36.3% in the trailing four quarters. The stock, with a long-term growth rate of 10.3%, has seen positive estimate revisions in the last 30 days.
Perry Ellis International has witnessed positive estimate revisions for the current fiscal over the past 60 days. Further, the company has an impressive earnings history.
Tailored Brands has delivered back-to-back positive earnings surprises in the last two quarters. Moreover, the company’s long-term growth rate of 17.5% and positive estimate revisions over the past 30 days, bode well.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research.See these stocks free >>