Jim Cramer - Mad MoneyVF Corporation VFCBUYOct 30, 2023
They reported a kitchen-sink quarter today where managers throw in everything bearish to get ahead of things. The new CEO has a fine track record and this was his first quarter at VFC: in-line sales, slightly weaker than expected earnings, slashed its free-cash guidance and cut dividend. He's pulling for them.
They reported a terrific quarter, so he doesn't understand why shares fell 3%. Their outlook was in-line and they delivered strong earnings. This could be a fantastic buying opportunity.
They've fallen behind in almost apparel category including VANS sneakers. The CEO warned that there's no quick fix. Is down 32% this year, though up 3.87% today.
(A Top Pick May 24/22, Down 20.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HMC has triggered its stop $36. To remain disciplined, we recommend covering the position at this time.
Stockchase Research Editor: Michael O'Reilly The retailer owns the brand names of The North Face and Vans. Its recently reported earnings were on par with expectations and supported a strong ROE of 35%. The company has continued to grow cash reserves, while retiring debt and buying back shares. It pays a good dividend that has been growing for 48 consecutive years and is backed by a payout ratio under 65% of cash flow. We recommend setting a stop loss at $36.00, looking to achieve $64.50 -- upside potential over 42%. Yield 4.3% (Analysts’ price target is $64.50)
Model price has come down from previous talks on it and is now $14.21. Has come down because more analysts are picking it up. There is a more realistic earnings number for '05. Sees good growth ahead. Trading at a 40% discount from its current price.
They reported a kitchen-sink quarter today where managers throw in everything bearish to get ahead of things. The new CEO has a fine track record and this was his first quarter at VFC: in-line sales, slightly weaker than expected earnings, slashed its free-cash guidance and cut dividend. He's pulling for them.