Wall Street recommendations on VFC
26 Wall Street analysts cover VF (VFC). The company is rated 2.4 on a scale where one is a strong buy, and five is a sell. VFC has a better rating than peers Ralph Lauren (RL) and Gap (GPS), which are rated 2.6 and 3.1, respectively. Sportswear companies Nike (NKE) and Under Armour (UA) have, however, received better ratings of 2.1 and 1.
Of the 26 analysts that have rated VFC, 13 have given a “buy” recommendation, 11 have given a “hold” recommendation, and two have given a “sell” recommendation on the stock. Investors who want exposure to VFC could consider the iShares Morningstar Large-Cap Growth ETF (JKE), which invests 0.40% of its portfolio in VFC.
Comparing VFC’s valuation to peers
VFC is trading at a one-year forward PE (price-to-earnings) ratio of 15.9x, operating closer to the lower end of its 52-week PE range of 14.8x–20.0x.
The stock is expensive compared to apparel peers PVH (PVH), Gap (GPS), and Hanesbrands (HBI), which are trading at 15.4x, 11.7x, and 13.3x, respectively. However, when compared to its sportswear peers, the company seems to be trading at a discount. Nike (NKE), Under Armour (UA), and Columbia Sportswear (COLM) are trading at 21.8x, 61x, and 22x, respectively.
Where is VFC’s stock price heading now?
VFC has received an average price target of $61.3 from Wall Street. This indicates an upside potential of 16% over the next 12 months. VFC has better potential compared to branded apparel peers PVH and Ralph Lauren. Both the companies are expected to rise 9% over the next 12 months.
Nike and Under Armour have higher upside attached to their superior ratings and premium valuations. The stock price of the two companies is expected to increase 24% and 30%, respectively, in the next 12 months.