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Levi Strauss (LEVI) ended the recent trading session at $18.40, demonstrating a +1.21% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.05%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.4%.
The jeans maker's stock has climbed by 6.94% in the past month, exceeding the Retail-Wholesale sector's gain of 6.79% and the S&P 500's gain of 5.75%.
Analysts and investors alike will be keeping a close eye on the performance of Levi Strauss in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.47, marking a 6.82% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.72 billion, up 4.54% from the year-ago period.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Levi Strauss is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Levi Strauss is at present trading with a Forward P/E ratio of 13.08. This denotes a discount relative to the industry's average Forward P/E of 16.61.
It's also important to note that LEVI currently trades at a PEG ratio of 1. 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 average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.63 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.