Levi's (LEVI, $15.93) slashes full-year guidance
Levi’s posted third quarter sales that surpassed expectations. However, the denim company slashed its guidance for the full-year.
Revenue came in at $1.51 billion, compared to the Street’s consensus for $1.59 billion.
The company now expects net revenue growth of between 6.7% to 7% for the full-year, down from a prior forecast of 11% to 13% growth. The outlook revision comes amidst an environment of a stronger dollar and supply chain challenges.
Levi’s guidance on adjusted diluted earnings per share is now $1.50 and $1.56, compared to previous guidance of $1.44 to $1.49.
“Despite a more challenging environment, we delivered solid third quarter results,” president and CEO Chip Bergh mentioned in a statement. “The Levi's brand grew 6 percent in constant-currency, hitting a 10- year record third quarter sales result.”
LEVI's RSI Oscillator ascends from oversold territory
The RSI Oscillator for LEVI moved out of oversold territory on May 22, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In of the 24 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where LEVI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LEVI just turned positive on May 22, 2023. Looking at past instances where LEVI's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEVI advanced for three days, in of 261 cases, the price rose further within the following month. The odds of a continued upward trend are .
LEVI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 50-day moving average for LEVI moved below the 200-day moving average on April 26, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEVI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LEVI entered a downward trend on May 26, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.706) is normal, around the industry mean (2.979). P/E Ratio (11.013) is within average values for comparable stocks, (27.316). LEVI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.780). Dividend Yield (0.036) settles around the average of (0.040) among similar stocks. P/S Ratio (0.862) is also within normal values, averaging (1.658).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. LEVI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LEVI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
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