Levi Strauss & Co. (LEVI) shares are trading at lower $15.85 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $19.40.
To add more color to this target, the company’s high over the last year is $20.70 and the low is $9.09. Over the last 52 weeks, LEVI is down -8.49% while the S&P 500 is up 7.73%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LEVI reported a profit of $577.4 million. Levi Strauss & Co. also saw revenues increase to $1.06 billion. In addition, LEVI has free cash flow of $151.38 million as of 08-2020. The company’s EBITDA came in at $116.11 million which compares well with its peers.
LEVI booked profit margins of -1.90%, its Return on Equity (ROE) is -6.40%, and its Return on Assets is -1.70%. All told, it is clear that, LEVI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LEVI has a short ratio of 4.16 and outstanding shares of 397.71M.
LEVI has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -0.24. Levi Strauss & Co. LEVI also noted assets of $5.55 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LEVI has historically followed its peers on positive news.
All told, Levi Strauss & Co. LEVI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LEVI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Levi Strauss & Co. LEVI is now commanding a market cap of 6.19B and a float of 60.77M. LEVI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LEVI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in LEVI, either long or short, and we have not been compensated for this article.