Why the Market Dipped But Levi Strauss (LEVI) Gained Today
Levi Strauss (LEVI) closed the most recent trading day at $15.42, moving +1.18% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.59%.
Prior to today's trading, shares of the jeans maker had lost 2.62% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.08% and the S&P 500's gain of 1.2% in that time.
The upcoming earnings release of Levi Strauss will be of great interest to investors. The company's earnings report is expected on January 25, 2024. The company's upcoming EPS is projected at $0.43, signifying a 26.47% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.66 billion, reflecting a 4.6% rise from the equivalent quarter last year.
Any recent changes to analyst estimates for Levi Strauss should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. Levi Strauss is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Levi Strauss is currently exchanging hands at a Forward P/E ratio of 11.6. This denotes a discount relative to the industry's average Forward P/E of 14.73.
Also, we should mention that LEVI has a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.21.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
