PVH Stock Rises 5% following Its 1Q17 Results
PVH Corporation (PVH) reported a strong 1Q17 on May 24, 2017, beating analysts’ consensus estimate on both its top and bottom lines.
PVH Corporation is among the best apparel stocks
As discussed, PVH Corporation (PVH) reported a strong 1Q17 on May 24, 2017, beating analysts’ consensus estimate on both its top and bottom lines. The company’s stock rose 4.9% to close at $106.98 on May 25.
PVH is now sitting at year-to-date (or YTD) rise of 19%, outperforming most other apparel players and the S&P 500 Index (SPX) with its rise of 7%. Competitors Ralph Lauren (RL), Lululemon Athletica (LULU), and Under Armour (UAA) have fallen 26%, 25%, and 32%, respectively, YTD.
PVH has also outperformed the S&P 500 Apparel and Accessories Index, which has fallen 3% YTD. The index tracks Ralph Lauren, Hanesbrands (HBI), VF Corporation (VFC), Coach (COH), PVH, Michael Kors (KORS), and Under Armour. Among the above-mentioned companies, only Coach has done better than PVH with a return of 31%.
Recent analyst action on PVH
After PVH’s expectation-beating results, the company was upgraded by JPMorgan to “overweight.” PVH is a “rarity in retail,” according to JPMorgan Chase analyst Matt Boss. Boss increased the stock’s target price to $125.00 from $116.00.
The company has earned “buy” ratings from 69% of the 16 analysts that cover it. This is one of the highest “buy” percentages in the apparel retail segment. VF Corporation and Ralph Lauren, in comparison, have ~27% and 6% “buy” ratings, respectively. Only HBI, with “buy” recommendations from 71% of analysts, is in a better position.
PVH has received a 2.2 rating from analysts on a scale of 1 (strong buy) to 5 (strong sell). This rating is better than the ratings of VF Corporation, Ralph Lauren, and The Gap, which have ratings of 2.7, 3.1, and a 3.1, respectively.
ETF investors seeking to add exposure to PVH can consider the PowerShares S S&P 500 High Beta ETF (SPHB), which invests ~1% of its portfolio in PVH.