Levi Strauss is a Promising Apparel Stock

LeviLevi Strauss & Co. (NYSE: LEVI) is an apparel company most famous for producing denim jeans and jackets. Over the years, the company has diversified its brand and now markets a full range of personal apparel and workwear. Levi is becoming attractive in the stock market, thanks to growing online demand and better than expected financials.

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The company reported Q3 earnings this week, surprising analysts and investors with its performance. Revenue of $1.1 billion was more than $230 million higher than the average estimate. While revenue was down 27% year over year, much of this decline can be attributed to the Coronavirus Pandemic and forced store closures in the U.S. and around the world.

The company’s eCommerce presence is offsetting the slowdown in physical retail. Online sales increased by 53% in the most recent quarter, and now comprise 8% of total revenue. The eCommerce business was profitable during the third quarter and is expected to become fully profitable by the end of the year.

eCommerce demand is increasing at a faster pace than expected, leading the company to predict growth again in the current quarter. Levi has high cash reserves, making it a stable company for investment today. An average stock target price of $19.40 suggests gains for investors who buy now.

Key Data:

  • 1 Year Price Growth: -9.03%
  • YTD Price Growth: -19.60%
  • 3 Month Price Growth: 58%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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