V.F. (VFC) Gains As Market Dips: What You Should Know

In the latest trading session, V.F. (VFC) closed at $13.45, marking a +2.36% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Prior to today's trading, shares of the maker of brands such as Vans, North Face and Timberland had lost 10.92% lagged the Consumer Discretionary sector's gain of 1.41% and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of V.F. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.51, marking a 1.92% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.7 billion, indicating a 3.67% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.07 per share and revenue of $9.56 billion, indicating changes of +30.49% and -0.51%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for V.F. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 shifted 0.1% downward. V.F. presently features a Zacks Rank of #3 (Hold).

With respect to valuation, V.F. is currently being traded at a Forward P/E ratio of 12.28. This denotes a discount relative to the industry average Forward P/E of 14.83.

It's also important to note that VFC currently trades at a PEG ratio of 0.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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