Wall Street’s view of PVH and peers
PVH Corporation (PVH) is covered by 16 Wall Street analysts, who together have a neutral-to-positive view of the company. Analysts have rated PVH a 2.3 on a scale of 1 (strong buy) to 5 (strong sell).
Notably, this rating is better than those of peers Ralph Lauren (RL), VF Corp (VFC), and Gap (GPS), which have ratings of 2.9, 2.8, and a 3.1, respectively. Hanesbrands (HBI), however, is rated better at 1.8.
Specifically, 63% of the analysts covering PVH recommend a “buy” for the stock. By comparison, 26% and 6% analysts recommend a “buy” for VFC and Ralph Lauren, respectively. Hanesbrands is the most preferred stock, with 79% “buy” ratings.
On the other hand, 31% of analysts recommend a “hold” for PVH, while 6% recommend a “sell.” None of the analysts recommends a “sell” for HBI.
Comparing target price and gain potential
PVH Corp is currently trading at $98.55, which is ~17% below its 52-week high price. Analysts expect the company’s stock price to touch $111.07 over the next 12 months, which indicates an upside of ~13%.
The company has a better upside, however, than VFC and Ralph Lauren, which are projected to fall 1% each, while Hanesbrand stock is expected to jump 31% over the next one-year period.
Is PVH a good purchase right now?
As we’ve outlined throughout this series, PVH has delivered strong performances, beating Wall Street expectations and outperforming its apparel competitors. For this reason, Wall Street is confident about PVH. The stock has done reasonably well this year, and it still has a good upside.
The company is currently trading at a one-year earnings multiple of 13.4x, operating closer to the lower end of its 52-week PE (price-to-earnings) range of 12x–16.3x and making it cheaper than most of its peers. VF Corp (VFC), Ralph Lauren (RL), and Coach (COH) are currently trading at next-12-month PE multiples of 17.6x, 15.6x, and 17.3x, respectively. Hanesbrands (HBI) and Gap (GPS) however, however, are trading at a discount to PVH, having been valued at 10.3x and 11.7x, respectively.
Notably, ETF investors looking for indirect exposure to PVH might consider the iShares Edge MSCI Multifactor Consumer Discretionary ETF (CNDF), which invests 2.11% of its portfolio in PVH.