Levi Strauss & Co. (LEVI) Has A Huge Competitive Advantage But Stay Cautious

Levi Strauss & Co., (LEVI)’s stock has risen by 25.64% from average 12-month price target of $23.13 expected by the analysts. The price of the stock ended December 12, 2019 trading at $18.41 which saw uptrend of -17.85% since the beginning of 2019. For most investors, the 2.16% rally in the share price could have prompted them to buy the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. Most analysts believed that the stock has the potential to rise by 52.09% or more. For Levi Strauss & Co. to record further gain analysts believe that the company has to hit $28 price target. The high price target for LEVI for next 12 months currently stands at $28. This means that the highest 12 months price target is 52.09% above its last closing price. The median price target for the stock over the next 12 months is $23.5, which means that it could rise by 27.65% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $18 for the stock which means it could rise by -2.23%.

Moving on, Levi Strauss & Co. (LEVI) last released its earnings for the August 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -9% year-over-year at $0.31. The company brought a surprise of 15 as analysts were predicting $0.27 per share. The revenue generated by Levi Strauss & Co. in the August 2019 quarter surged by 4% to reach $1.45 billion. This is high compared to the $1.39 billion it recorded in the same quarter last year. To see what traders should watch in its November 2019 financial results, analysts have consensus earnings per share of $0.21 which is lower than the recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 9.51%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 4.2 % could be achieved. The company has also recorded a revenue of $5.79 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Levi Strauss & Co. (NYSE:LEVI) is now trading at 18.41X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is X while the industry average stands at X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Levi Strauss & Co. was able to achieve an EPS of $1 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Thursday, December 12 of 2019, the 14-day Absolute ATR (Average True Range) for LEVI moved by $0.4. Over the past seven days, the stock’s average daily volatility stood at 2.47%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Levi Strauss & Co.’s trading volume has recently moved to 1.42 million, which is compared with the average daily volume of 1.04 million shares.

The daily chart for LEVI, points out that the company has recorded -14.33% losses over the past six months. However, it is still 15.06% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 7.1% though it is 7.87% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 5.65% while it is down -5.93% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of LEVI reveals that it has gained some grounds as it ended Thursday with a 8.29% rise over the past 30 days.