Levi Strauss shares traded higher after-hours Tuesday, following the jean company’s earnings beat.
For the quarter ended Aug. 25, Levi’s adjusted earnings came in at 31 cents per share, surpassing the 28 cents a share that analysts expected (based on FactSet poll of analysts). The earnings were, however, lower than the year-ago quarter’s 34 cents.
Revenue in the quarter increased +3.8% year-over-year to $1.45 billion, compared to analysts’ estimate of $1.44 billion.
Growth in international sales offset softness in Americas sales. Revenue from Europe surged +14% year-over-year and that from Asia climbed +9%. Americas business fell -3%.
Direct-to-consumer sales grew +12% year-over-year in the third quarter, on the back of new store openings and expansion of Levi’s e-commerce offerings.
Looking ahead, the company expects revenue to grow +5.5% to +6% on a constant-currency basis for the full-year.
“For the fourth quarter, we again expect strong performance in international, direct-to-consumer, women’s and tops, and improved comparisons for U.S. wholesale,” CEO Chip Bergh said.
LEVI saw its Momentum Indicator move above the 0 level on March 19, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned positive. In of the 94 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for LEVI just turned positive on March 27, 2024. Looking at past instances where LEVI's MACD turned positive, the stock continued to rise in of 51 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 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 199 cases where LEVI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
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 .
LEVI broke above its upper Bollinger Band on March 27, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 (3.768) is normal, around the industry mean (3.134). P/E Ratio (31.242) is within average values for comparable stocks, (27.615). LEVI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.791). Dividend Yield (0.025) settles around the average of (0.039) among similar stocks. P/S Ratio (1.259) is also within normal values, averaging (1.798).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LEVI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally 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 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 80, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of jeans, casual apparel, and sportswear
Industry ApparelFootwear