Here's Why Levi Strauss (LEVI) Gained But Lagged the Market Today
The latest trading session saw Levi Strauss (LEVI) ending at $18.28, denoting a +0.49% adjustment from its last day's close. This change lagged the S&P 500's 0.63% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.82%.
Shares of the jeans maker have appreciated by 1.85% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.64% and outperforming the S&P 500's gain of 1.76%.
Analysts and investors alike will be keeping a close eye on the performance of Levi Strauss in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.20, reflecting a 41.18% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, down 9.54% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.22 per share and a revenue of $6.33 billion, indicating changes of +10.91% and +2.42%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Levi Strauss. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 1.34% lower. As of now, Levi Strauss holds a Zacks Rank of #4 (Sell).
Investors should also note Levi Strauss's current valuation metrics, including its Forward P/E ratio of 14.87. This signifies a discount in comparison to the average Forward P/E of 15.42 for its industry.
One should further note that LEVI currently holds a PEG ratio of 1.16. 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. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.52.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 168, finds itself in the bottom 34% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
