VFC Stock – An Unknown Stock With Breakout Potential

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VF Corp (NYSE:VFC) is the world’s largest apparel and footwear company, but remains unfamiliar to most investors.

Though you may not own VFC stock, VF Corp brands are probably scattered throughout your closet including household names such as The North Face, Vans, Timberland, Nautica, and Wrangler.

If you’re in the market for a breakout stock in the consumer sector, VFC stock may be worth adding to your investment portfolio before its Feb. 13 report.

VFC Corp.While apparel stock investors may be familiar with the success story of Under Armour Inc (NYSE:UA), which has roughly tripled in the last two years, the success of VFC stock is also noteworthy.

Specifically, VF Corp. is up about 85% since January 2013, almost doubling the 45% return for the broader S&P 500 index, and even outperforming apparel giant Nike Inc (NYSE:NKE), and blowing away one-time darling Lululemon Athletica Inc (NASDAQ:LULU) that has posted a small loss in the same period.

VF Corporation is a leader in the clothing industry with powerful consumer brands and a focus on global expansion.

This is sure to show in the upcoming VF Corp. earnings report.

We already saw strong Q3 financial performance due in large part to VF’s Outdoor and Action Sports Coalition.
VF Corp. posted overall revenue growth of 7%, thanks to almost 11% growth in Outdoor and Action Sports — its largest division, which represents about 62% of total sales.

On top of this, EPS also increased 11%.

With a date of Feb. 13 for VF Corp. earnings, both investors should anxiously await the results of this global powerhouse and consider a position in VFC stock.

VF Corp. Earnings – What to Watch

  • For the past five years, VFC stock has experienced a roaring upward trend. Sales are projected to rise 71% in fiscal 2014 vs. fiscal 2009 , while EPS saw a growth surge of 200% in the same period! VF Corp’s continuous drive for international expansion through their online and global distribution efforts has generated a hefty profit for investors.
  • Another area of opportunity for VFC stock investors includes a remarkable 42 years of dividend growth. At first glance, VF’s 1.9% dividend yield may appear unimpressive, but don’t let that fool you. VF Corp has awarded shareholders with over 40 years of increased payouts. For over a decade, a yearly dividend increase of over 15%.
  • A mixture of strong, leading brands and a commitment to innovation has led to continued success for VF Corporation. VFC’s most recent endeavors, including “direct-to-consumers” sales, hold big upside. For instance, D2C sales reported in Q3 grew by 16%.
  • Last, but not least, the topic of VFC stock gross margins. A decades worth of increased margin expansion has added millions in additional profit for VF Corp. The drastic plunge in cotton (along with oil and the other ill-fated commodities) will only benefit VF.

VFC stock’s climb over the last two years should continue after VF Corp. earnings in February. If you haven’t already, buy VF Corp stock.

As of this writing, Anna Rider did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2015/02/vfc-stock-vf-corp-breakout-stock/.

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