Trade-Ideas: PVH (PVH) Is Today's Post-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified PVH ( PVH) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified PVH as such a stock due to the following factors:

  • PVH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.7 million.
  • PVH is down 3.9% today from today's close.

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More details on PVH:

PVH Corp. operates as an apparel company in the United States and internationally. The stock currently has a dividend yield of 0.2%. PVH has a PE ratio of 31.9. Currently there are 9 analysts that rate PVH a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for PVH has been 709,600 shares per day over the past 30 days. PVH has a market cap of $10.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.36 and a short float of 1.4% with 2.06 days to cover. Shares are up 7.7% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates PVH as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 35.9%. 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.
  • The gross profit margin for PVH CORP is rather high; currently it is at 57.37%. 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 -1.03% trails the industry average.
  • Compared to its closing price of one year ago, PVH's share price has jumped by 39.03%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • PVH CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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 ($7.15 versus $5.87).
  • The debt-to-equity ratio of 1.09 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, PVH's quick ratio is somewhat strong at 1.22, demonstrating the ability to handle short-term liquidity needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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