In This Article:
Levi Strauss (LEVI) ended the recent trading session at $17.11, demonstrating a -1.1% swing from the preceding day's closing price. This change lagged the S&P 500's 0.38% gain on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 1.24%.
Prior to today's trading, shares of the jeans maker had gained 4.41% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.26% and the S&P 500's gain of 1.17% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Levi Strauss in its upcoming earnings disclosure. On that day, Levi Strauss is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 6.82%. In the meantime, our current consensus estimate forecasts the revenue to be $1.72 billion, indicating a 4.54% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Levi Strauss. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Levi Strauss presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Levi Strauss has a Forward P/E ratio of 12.45 right now. This valuation marks a discount compared to its industry's average Forward P/E of 17.68.
It is also worth noting that LEVI currently has a PEG ratio of 0.95. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.28 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 74, finds itself in the top 30% echelons of all 250+ industries.