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Levi Strauss (LEVI) Outperforms Broader Market: What You Need to Know

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Levi Strauss (LEVI - Free Report) closed the most recent trading day at $18.99, moving +0.96% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.2%. Meanwhile, the Dow experienced a rise of 0.24%, and the technology-dominated Nasdaq saw an increase of 0.21%.

The jeans maker's shares have seen an increase of 2.45% over the last month, surpassing the Retail-Wholesale sector's loss of 1.25% and the S&P 500's loss of 1.49%.

The investment community will be paying close attention to the earnings performance of Levi Strauss in its upcoming release. The company is predicted to post an EPS of $0.33, indicating a 17.86% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.55 billion, indicating a 2.7% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $6.31 billion. These totals would mark changes of +13.64% and +2.12%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Levi Strauss. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Levi Strauss holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Levi Strauss is holding a Forward P/E ratio of 15.11. This indicates a discount in contrast to its industry's Forward P/E of 16.06.

Meanwhile, LEVI's PEG ratio is currently 1.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.8.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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