Apparel Name Boosted By Earnings Beat

The apparel company reported a fourth-quarter earnings beat

Assistant Editor
Apr 2, 2020 at 10:34 AM
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PVH Corp (NYSE: PVH) is up 3.6% to trade at $33.82 after announcing their fourth quarter earnings yesterday. The apparel company, operating popular brands such as Calvin Klein, reported profits of $1.88 per share, higher than Wall Street's anticipated $1.81 per share. Despite the revenue also outperforming expectations, no less than three analysts have cut their price targets down to $60 -- Guggenheim's all the way from $125. All of PVH's stores in China have recently opened back up, and for the month of March they have stated that total sales have only been down around 35%. 

PVH has had a bearish couple of months with pressure from the 20-day moving average. Despite resolving a bear gap that culminated in an 11-year low of $28.40 on March 23, PVH has had a hard time breaking out past the $40 range. 

Analysts are split towards the bullish side today, with eight out of 14 analysts sporting a "strong buy" or "buy," and the remaining six considering a hold with not a "strong sell" or "sell" in sight. The 12-month consensus target price of $68.26 is still a 95% premium to current levels.

Furthermore, PVH's Schaeffer's Volatility Scorecard (SVS) sits at a high 96 out of 100. This indicates that the stock has tended to exceed option traders' volatility expectations during the past year. 

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