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Phillips-Van Heusen (NYSE:PVH) sells clothes, sunglasses, and shoes for men, women, and children under its Van Heusen, Bass, Calvin Klein, and IZOD brands, as well as licensed names and private labels. Products are distributed to wholesale clients and through the firm's own outlet stores.
The company pleased investors late last month, when it announced Q3 EPS of 89 cents and revenues of $568.3 million. Analysts were looking for 84 cents and $563.7 million. Management also guided Q4 EPS to 43 cents (43 cent consensus), Q4 revenues to $528-$532 million ($483.70M consensus), FY07 EPS to $2.59 ($2.53 consensus), FY07 revenues to $2.06-$2.07 billion ($2.01B consensus) and FY08 EPS to $2.97-$3.05 ($2.92 consensus).
The CEO cited strength in the Calvin Klein brand and growth in the retail outlet and wholesale sportswear businesses for success. Four brokerages subsequently reiterated "buy" ratings on the issue and declared price targets in the range $56-$62.
The news kept PVH shares cycling through a positive twelve-week trading channel. The price is currently descending to the base of that channel, where CCI, Momentum, Stochastic and MACD technical parameters suggest the potential for a rise back toward the top. The correspondence of the stock's 30-day moving average to the base of the channel backs the rebound notion.
Altogether, brokers recommend the issue with four "strong buys", eight "buys", and one "hold". Analysts see an 18% growth rate through the next year.
The PVH P/E ratio (20.35), PEG ratio (1.13), Price to Sales ratio (1.42), Price to Book ratio (3.13), Price to Free Cash Flow ratio (16.90) and EPS Growth rate (21.92%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index.
Over the past twelve months, it has traded between $31.24 and $52.90. If I were to invest, I'd consider a stop-loss of $44.50
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.
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Reader Comments (Page 1 of 1)
12-27-2006 @ 5:53PM
larry saidel said...
Solomon Technologies developed the hybrid engine and I am told worked for some period of time with Toyota and a few years later Toyota stole this technology and without a contract that would allow them to receive royalties, Toyota introduced the first hybrid car using Solomon's patents without permission. Its in the courts and first results of the law suit were hin favor of Solomon with another review coming up in January 2007. It could get very interesting if Solomon gets the decision they are anticipating. Just how high this would push their stock up is anyones guess.