Levi Strauss (LEVI) Laps the Stock Market: Here's Why
Levi Strauss (LEVI) closed the most recent trading day at $18.25, moving +0.77% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.37%.
The the stock of jeans maker has risen by 9.23% in the past month, leading the Retail-Wholesale sector's loss of 0.11% and the S&P 500's gain of 3.8%.
The investment community will be paying close attention to the earnings performance of Levi Strauss in its upcoming release. The company's earnings per share (EPS) are projected to be $0.22, reflecting a 35.29% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.53 billion, down 9.54% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.24 per share and a revenue of $6.33 billion, signifying shifts of +12.73% and +2.42%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Levi Strauss. These revisions help to show the ever-changing nature of 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. Currently, Levi Strauss is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Levi Strauss is presently trading at a Forward P/E ratio of 14.6. This valuation marks a discount compared to its industry's average Forward P/E of 15.55.
We can also see that LEVI currently has a PEG ratio of 1.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.7 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
