V.F. (VFC) closed the most recent trading day at $17.37, moving +2.42% from the previous trading session. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Heading into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 5.41% over the past month, lagging the Consumer Discretionary sector's loss of 2.34% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of V.F. in its upcoming release. On that day, V.F. is projected to report earnings of -$0.22 per share, which would represent year-over-year growth of 8.33%. In the meantime, our current consensus estimate forecasts the revenue to be $1.68 billion, indicating a 4.85% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.1 per share and revenue of $9.52 billion, which would represent changes of +34.15% and -0.88%, respectively, from the prior year.
Any recent changes to analyst estimates for V.F. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 3.13% lower. At present, V.F. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, V.F. is currently trading at a Forward P/E ratio of 15.42. This expresses a premium compared to the average Forward P/E of 15.39 of its industry.
One should further note that VFC currently holds a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.14 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 154, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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V.F. Corporation (VFC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).