PVH Corp Stock Buy Recommendation Reiterated (PVH)

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) -- PVH (NYSE: PVH) 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 revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • PVH's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, PVH's share price has jumped by 45.46%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PVH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PVH CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PVH CORP increased its bottom line by earning $5.87 versus $4.36 in the prior year. This year, the market expects an improvement in earnings ($7.00 versus $5.87).
  • The gross profit margin for PVH CORP is rather high; currently it is at 56.10%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.93% trails the industry average.

PVH Corp. operates as an apparel company in the United States and internationally. PVH has a market cap of $9.6 billion and is part of the consumer goods sector and consumer non-durables industry. The company has a P/E ratio of 32.00, above the S&P 500 P/E ratio of 18.00. Shares are up 7.7% year to date as of the close of trading on Tuesday.

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

--Written by a member of TheStreet Ratings Staff.

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