Levi Strauss (LEVI) Outperforms Broader Market: What You Need to Know
Levi Strauss (LEVI) closed at $16.96 in the latest trading session, marking a +0.18% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.16%.
The the stock of jeans maker has risen by 10.94% in the past month, leading the Retail-Wholesale sector's gain of 6.73% and the S&P 500's gain of 4.89%.
Analysts and investors alike will be keeping a close eye on the performance of Levi Strauss in its upcoming earnings disclosure. The company is expected to report EPS of $0.43, up 26.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.66 billion, up 4.6% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Levi Strauss. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Levi Strauss presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Levi Strauss is holding a Forward P/E ratio of 12.92. For comparison, its industry has an average Forward P/E of 15.86, which means Levi Strauss is trading at a discount to the group.
Meanwhile, LEVI's PEG ratio is currently 0.58. 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 Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
