VF Corporation Stock Buy Recommendation Reiterated (VFC)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- VF Corporation (NYSE: VFC) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • VFC's revenue growth has slightly outpaced the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • VF CORP has improved earnings per share by 19.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VF CORP increased its bottom line by earning $7.96 versus $5.17 in the prior year. This year, the market expects an improvement in earnings ($9.51 versus $7.96).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 20.0% when compared to the same quarter one year prior, going from $129.37 million to $155.30 million.

V.F. Corporation designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. The company has a P/E ratio of 19.7, equal to the average consumer non-durables industry P/E ratio and above the S&P 500 P/E ratio of 17.7. VF has a market cap of $17.98 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 32.5% year to date as of the close of trading on Tuesday.

You can view the full VF Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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