I like to invest in things I understand. And I understand that when I look in my closets, I see a lot of apparel manufactured and sold by VF Corp. If you're not sure of what I mean, look in your closet for the following brands. They're all produced by VF Corp.
- VF Corp is the largest by market cap in the apparel space but it has a lot of competitors and fashion is fickle.
- This company sells a variety of apparel at multiple price points that can be found in most clothing stores and in virtually everyone's closet.
- Revenues, earnings and dividends are estimated to grow at 13%-14% per year going forward.
V.F. Corporation (VFC) designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. The company offers outdoor adventure-oriented, skateboard-inspired, surf-inspired, and outdoor gear footwear and apparel products; and handbags, backpacks, accessories, merino wool socks, luggage, packs, travel accessories, and women’s active wear under The North Face, Timberland, Vans, Kipling, Napapijri, Reef, Eastpak, JanSport, SmartWool, lucy, and Eagle Creek brands. It also provides denim and casual bottoms, and tops under the Wrangler, Lee, Lee Casuals, Riders, Rustler, and Timber Creek by Wrangler brands, as well as fashion denim and sportswear under the Rock & Republic brand. In addition, the company offers occupational, protective occupational, athletic, licensed athletic, and licensed apparel products under the Red Kap, Bulwark, Horace Small, Majestic, MLB, NFL, and Harley-Davidson brands; and fashion sportswear, denim bottoms, sleepwear, and underwear, as well as handbags, luggage, backpacks, and accessories under the Nautica and Kipling brands. Further, it provides premium denim and casual bottoms, sportswear, and accessories, as well as premium women’s sportswear under the 7 For All Mankind, Splendid, and Ella Moss brands. The company sells its products to specialty stores, department stores, national chains, and mass merchants, as well as sells through company operated stores and e-commerce sites. V.F. Corporation was founded in 1899 and is headquartered in Greensboro, North Carolina. (Daily Chart) (Weekly Chart)
11 May 2014
1yr Target $67.71
1yr Cap Gain 9.63%
1yr Tot Return 11.33%
3yr DGR 8.68%
5yr DGR 9.42%
Payout Ratio 33.57%
EPS (ttm) $2.75
EPS next yr $3.50
3yr = 13.85% 5yr = 8.40% 10yr = 8.17%
Earnings Growth Rates
3yr = 27.75% 5yr = 14.95% 10yr = 11.65%
Dividend Growth Rates
3yr = 8.68% 5yr = 9.42% 10yr = 13.79%
I also think that although the price of this company's stock is currently a little pricey, it'll probably remain pricey as long as the economy continues to improve. While I would like to buy this stock or any other stock at the best possible price, I'm not sure this stock will fall much below $57.00 per share any time soon. My strategy on this particular stock will be to begin buying it when it falls below $60.00 per share and then add to it over time. I normally like to buy stocks with a P/E ratio less than 20 and based upon estimated earnings $3.09 this year, a price of $60.00 or below is acceptable to me. I would not be surprised to see this stock double to approximately $120 per share within the next five years, simply based upon estimates of revenues and earnings and dividends going forward.
Good Luck and Good Trading.