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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth 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.

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Highlights from the ratings report include:
  • Powered by its strong earnings growth of 26.17% and other important driving factors, this stock has surged by 31.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, VFC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • VF CORP has improved earnings per share by 26.2% 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 $9.71 versus $7.96 in the prior year. This year, the market expects an improvement in earnings ($10.80 versus $9.71).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 25.6% when compared to the same quarter one year prior, rising from $215.22 million to $270.42 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 2.2%. Growth in the company's revenue appears to have helped boost the earnings per share.

V.F. Corporation designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. VF has a market cap of $20.4 billion and is part of the consumer goods sector and consumer non-durables industry. The company has a P/E ratio of 18.00, above the S&P 500 P/E ratio of 18.00. Shares are up 22.6% year to date as of the close of trading on Wednesday.

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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