2023-04-19 09:53:00 ET
To say that VF Corp . (NYSE: VFC) has been falling out of favor with Wall Street in recent years would be a tremendous understatement. The business, which is home to well-known fashion brands like Vans, The North Face, Timberland, and Dickies, underwent a major change three years back, spinning off its denim brands into a different company. Now, investors must consider what to do with the beaten-down stock.
As of April 14, VF shares are down 78% from their peak in January 2020. And they are down 60% in the past 12 months. Does this mean it's time to buy ? Let's take a closer look at this once-popular apparel stock .
Since spinning off the denim portfolio into Kontoor Brands ( NYSE: KTB) in May 2019, VF's stock has fallen 76%. Kontoor, on the other hand, is up 17% over the same time frame. As a result of this pronounced underperformance, VF shares are trading hands at a price-to-earnings multiple of 21. This doesn't scream cheap at first glance, but it is below the average three-, five-, and 10-year average multiples. Add this to the current dividend yield of 8.1%, and it might be enough to entice some investors to own shares.
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VF Corp. Is Down 78% From Its High. Time to Buy?