Levi Strauss (LEVI) Stock Declines While Market Improves: Some Information for Investors
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The latest trading session saw Levi Strauss (LEVI) ending at $16.88, denoting a -1.06% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.32%.
Shares of the jeans maker have appreciated by 5.5% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.04% and the S&P 500's gain of 5.2%.
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The investment community will be paying close attention to the earnings performance of Levi Strauss in its upcoming release. The company's earnings per share (EPS) are projected to be $0.13, reflecting a 18.75% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.37 billion, indicating a 5.23% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $5.97 billion. These totals would mark changes of -1.6% and -6.11%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Levi Strauss. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Levi Strauss holds a Zacks Rank of #3 (Hold).
In terms of valuation, Levi Strauss is presently being traded at a Forward P/E ratio of 13.87. This represents a discount compared to its industry's average Forward P/E of 16.45.
It is also worth noting that LEVI currently has a PEG ratio of 1.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.95.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 35% of all 250+ industries.