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V.F. (VFC) Gains But Lags Market: What You Should Know

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In the latest trading session, V.F. (VFC) closed at $73.80, marking a +0.31% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 0.45%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 5.69% in the past month. In that same time, the Consumer Discretionary sector lost 9.06%, while the S&P 500 lost 0.83%.

V.F. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.21, up 30.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.62 billion, up 21.84% from the year-ago period.

VFC's full-year Zacks Consensus Estimates are calling for earnings of $3.18 per share and revenue of $11.99 billion. These results would represent year-over-year changes of +142.75% and +29.76%, respectively.

Investors might also notice recent changes to analyst estimates for V.F.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. V.F. currently has a Zacks Rank of #3 (Hold).

Digging into valuation, V.F. currently has a Forward P/E ratio of 23.14. Its industry sports an average Forward P/E of 15.95, so we one might conclude that V.F. is trading at a premium comparatively.

Also, we should mention that VFC has a PEG ratio of 0.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 1.11 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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