Levi Strauss (LEVI) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Levi Strauss (LEVI) ending at $15.06, denoting a -1.89% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.46%. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.7%.
The jeans maker's shares have seen an increase of 7.72% over the last month, surpassing the Retail-Wholesale sector's gain of 4.47% and the S&P 500's gain of 4.85%.
The investment community will be paying close attention to the earnings performance of Levi Strauss in its upcoming release. The company is expected to report EPS of $0.43, up 26.47% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.66 billion, indicating a 4.6% growth compared to the corresponding quarter of the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Levi Strauss. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.25% decrease. Levi Strauss currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Levi Strauss currently has a Forward P/E ratio of 11.72. This indicates a discount in contrast to its industry's Forward P/E of 14.54.
One should further note that LEVI currently holds a PEG ratio of 0.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.54 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 41% of all industries, numbering over 250.
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.
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
