Investment thesis
Despite correcting more than 25% year-to-date, Levi Strauss (NYSE:LEVI) stock fails to appeal. Near-term demand erosion will hurt apparel companies, including Levi Strauss. The company’s revenues and earnings could decline in fiscal 2020. I suggest shorting Levi Strauss stock on each recovery as near-term challenges are likely to limit the upside.
Levi Strauss stock recovered sharply (up about 42%) in the last three trading days after it touched its new 52-week low of $10.14 on March 23. At the time of this writing, Levi Strauss stock was quoting $14.20, up about