Levi Strauss (LEVI) Exceeds Market Returns: Some Facts to Consider
Levi Strauss (LEVI) closed at $17.87 in the latest trading session, marking a +1.02% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 0.3%.
Shares of the jeans maker have appreciated by 14.72% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 5.24% and the S&P 500's gain of 4.61%.
The upcoming earnings release of Levi Strauss will be of great interest to investors. In that report, analysts expect Levi Strauss to post earnings of $0.22 per share. This would mark a year-over-year decline of 35.29%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.53 billion, indicating a 9.54% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.24 per share and a revenue of $6.33 billion, demonstrating changes of +12.73% and +2.42%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Levi Strauss. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 5.58% lower. Currently, Levi Strauss is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Levi Strauss is presently being traded at a Forward P/E ratio of 14.27. This represents a discount compared to its industry's average Forward P/E of 14.76.
It's also important to note that LEVI currently trades at a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.64 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
