Latest news with #KTB
Yahoo
02-06-2025
- Business
- Yahoo
4 Discretionary Stocks to Buy as Inflation Continues to Cool
Inflation is finally showing signs of cooling, and consumer spending is increasing. The Commerce Department reported on Friday that inflation rose only slightly in April, a positive sign for the economy after it contracted in the first quarter of 2025. President Donald Trump's tariffs, which were announced in early April, have been put on hold as trade negotiations with several countries are ongoing. Also, consumer confidence rebounded in May, indicating that people now have more faith in the economy's prospects. Given the positive sentiment, it would be prudent to invest in consumer discretionary stocks such as Interface, Inc. TILE, Kontoor Brands, Inc. KTB, GDEV Inc. GDEV and Netflix, Inc. NFLX. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Commerce Department reported that in April, the personal consumption expenditure (PCE) index, the Federal Reserve's key inflation gauge, rose 0.1% sequentially and 2.1% from year-ago levels, after increasing 2.3% in March. Core PCE, which strips out the volatile food and energy components, rose 0.1% month over month in April and 2.5% from the year-ago levels, the smallest advance since March 2021. The Federal Reserve tracks PCE for its 2% inflation target. April's reading suggests inflation is on track to meet the Fed's target. Consumer spending slowed in April but still increased 0.2% month over month. Personal income also rose 0.8% sequentially in April. Inflation has been showing signs of cooling over the past few months. However, sweeping tariffs announced by Trump in early April rattled Wall Street as concerns grew that higher import duties could trigger inflation and push the economy into a recession. However, those fears have subsided over the past month after the tariffs were temporarily paused and the United States initiated trade talks with several countries, including China. The White House also announced a trade deal with the UK last month. Slowing inflation and fading trade war fears have raised hopes that the Federal Reserve could soon resume its rate cuts. Also, higher personal income and consumer spending signal a resilient economy. Given the positive sentiment, it would be ideal to invest in consumer discretionary stocks. Interface, Inc. is the world's largest manufacturer of modular carpets, which it markets under the Interface and FLOR brands. TILE is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value. Interface's expected earnings growth rate for the current year is 8.2%. The Zacks Consensus Estimate for current-year earnings has improved by 2.6% over the past 60 days. TILE presently has a Zacks Rank #2. Kontoor Brands, Inc. is an apparel company. KTB designs, manufactures and distributes products. KTB's brand consists of Wrangler, Lee and Rock & Republic. Kontoor Brands Inc. is based in Greensboro. Kontoor Brands' expected earnings growth rate for the current year is 9.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 60 days. KTB currently carries a Zacks Rank #2. GDEV Inc. is a gaming and entertainment powerhouse, focused on growing and enhancing its portfolio of studios. GDEV's diverse range of subsidiaries, including Nexters, Cubic Games, Dragon Machines and more. GDEV's expected earnings growth rate for the current year is 58%. The Zacks Consensus Estimate for current-year earnings has improved 21.8% over the past 60 days. GDEV currently carries a Zacks Rank #2. Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. Netflix's expected earnings growth rate for the current year is 27.7%. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. NFLX currently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Interface, Inc. (TILE) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report GDEV Inc. (GDEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
14-05-2025
- Business
- Yahoo
Kontoor (KTB) is an Incredible Growth Stock: 3 Reasons Why
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Kontoor Brands (KTB) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). While there are numerous reasons why the stock of this maker of Wrangler and Lee apparel is a great growth pick right now, we have highlighted three of the most important factors below: Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Kontoor is 13.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 9.5% this year, crushing the industry average, which calls for EPS growth of 1.8%. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales. Right now, Kontoor has an S/TA ratio of 1.58, which means that the company gets $1.58 in sales for each dollar in assets. Comparing this to the industry average of 1.19, it can be said that the company is more efficient. In addition to efficiency in generating sales, sales growth plays an important role. And Kontoor is well positioned from a sales growth perspective too. The company's sales are expected to grow 1.1% this year versus the industry average of 0.8%. Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The current-year earnings estimates for Kontoor have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.9% over the past month. While the overall earnings estimate revisions have made Kontoor a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that Kontoor is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-05-2025
- Business
- Yahoo
Why Kontoor Brands, Inc. (NYSE:KTB) Could Be Worth Watching
Kontoor Brands, Inc. (NYSE:KTB), is not the largest company out there, but it saw a significant share price rise of 21% in the past couple of months on the NYSE. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Let's take a look at Kontoor Brands's outlook and value based on the most recent financial data to see if the opportunity still exists. We've discovered 3 warning signs about Kontoor Brands. View them for free. The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 14.27x is currently trading slightly below its industry peers' ratio of 14.63x, which means if you buy Kontoor Brands today, you'd be paying a reasonable price for it. And if you believe Kontoor Brands should be trading in this range, then there isn't much room for the share price to grow beyond the levels of other industry peers over the long-term. Furthermore, it seems like Kontoor Brands's share price is quite stable, which means there may be less chances to buy low in the future now that it's priced similarly to industry peers. This is because the stock is less volatile than the wider market given its low beta. See our latest analysis for Kontoor Brands Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Kontoor Brands, it is expected to deliver a negative earnings growth of -0.3%, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term. Are you a shareholder? KTB seems priced close to industry peers right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on KTB, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping tabs on KTB for a while, now may not be the most advantageous time to buy, given it is trading around industry price multiples. This means there's less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven't considered today, which can help gel your views on KTB should the price fluctuate below the industry PE ratio. If you want to dive deeper into Kontoor Brands, you'd also look into what risks it is currently facing. For instance, we've identified 3 warning signs for Kontoor Brands (1 makes us a bit uncomfortable) you should be familiar with. If you are no longer interested in Kontoor Brands, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
3 Reasons KTB is Risky and 1 Stock to Buy Instead
Shareholders of Kontoor Brands would probably like to forget the past six months even happened. The stock dropped 26.6% and now trades at $57.84. This may have investors wondering how to approach the situation. Is now the time to buy Kontoor Brands, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why KTB doesn't excite us and a stock we'd rather own. Founded in 2019 after separating from VF Corporation, Kontoor Brands (NYSE:KTB) is a clothing company known for its high-quality denim products. Investors interested in Apparel and Accessories companies should track constant currency revenue in addition to reported revenue. This metric excludes currency movements, which are outside of Kontoor Brands's control and are not indicative of underlying demand. Over the last two years, Kontoor Brands failed to grow its constant currency revenue. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Kontoor Brands might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Kontoor Brands's revenue to rise by 1.6%. While this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Kontoor Brands's EPS grew at an unimpressive 4.9% compounded annual growth rate over the last five years. On the bright side, this performance was better than its flat revenue and tells us management responded to softer demand by adapting its cost structure. Kontoor Brands's business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 11.1× forward price-to-earnings (or $57.84 per share). This valuation multiple is fair, but we don't have much faith in the company. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward our favorite semiconductor picks and shovels play. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
