V.F. Corp Soars to a New High - Analyst Blog
May 08 2013 - 12:53PM
Zacks
Shares of V.F. Corporation (VFC) crafted a new
52-week high of $180.01 on Tuesday, May 7, 2013 based on the
company’s consistent positive earnings surprise trend, strong
organic revenue growth, impressive management guidance and
strategies to expand its global reach.
This home improvement retailer eventually closed trade at $179.95
on May 7, recording a year-to-date return of 19.7%. Average volume
of shares traded over the last 3 months stands at approximately
667K. Moreover, the company currently trades at a forward P/E of
16.5x, a 5.1% premium to the industry average of 15.7x.
If we look at the company’s earnings surprise history, this Zacks
Rank #2 (Buy) stock has outperformed the Zacks Consensus Estimate
in the past 14 quarters. The average positive surprise in the
trailing 14 quarters comes to 10.5%.
V.F. Corp.'s diversified brand portfolio and its approach to brand
management, which remains focused on further developing its brands,
position the company well above its peers. We believe that given
the strength of many of its brands and opportunities with regard to
distribution, the company is set for significant long-term
growth.
Last month, V.F. Corp. reported robust first-quarter 2013 earnings
results primarily driven by strong top-line growth and improved
margins. First-quarter earnings of $2.43 per share exhibited an
improvement of over 25.3% from the comparable year-ago quarter and
the Zacks Consensus Estimate of $2.17.
V.F. Corp’s total sales grew 2.2% to $2,611.9 million in the
quarter but fell short of the Zacks Consensus Estimate of $2,652
million.
Given the solid first-quarter results, the company expects 2013
revenues to increase 6% to $11.5 billion. Gross and operating
margins are anticipated to expand by 100 basis points.
Based on these forecasts, V.F. Corp. expects its adjusted earnings
for 2013 to rise by 5 cents to $10.75 per share, compared to the
previous forecast of $10.70 per share. Currently, the Zacks
Consensus Estimate stands at $12.25 per share, which is
substantially above the company’s guidance.
Apart from strong first-quarter results, V.F. Corp.’s growth story
looks compelling. We believe that the company’s sustained focus on
strategic acquisitions, along with expanding global operations,
bode well for future growth.
Besides V.F. Corp., companies such as Archer Daniels
Midland Company (ADM), Nordstrom Inc.
(JWN) and Whirlpool Corp. (WHR) achieved new
52-week highs of $34.34, $58.66 and $122.80, respectively, on
Tuesday, May 7.
ARCHER DANIELS (ADM): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
WHIRLPOOL CORP (WHR): Free Stock Analysis Report
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