Levi Strauss & Co. $LEVI
1. Is the company undervalued?
EV/EBIT: 10.17
EV/Sales: 1.3
Price/Book: 3.74

$LEVI is a durable brand, which is trading at an attractive price. The company is also forecasting high single digit revenue growth and returning 60% of free cash flow back to
shareholders. If management can hit their goals, the stock is likely selling at a steep discount.

Link to full write-up here:

What to watch
Are you prepared to take on the markets this week? If not, here’s a helpful watchlist of some of the most anticipated events for the week beginning April 4th to help you navigate your investing and trading decisions. Like, share and save this post for reference. Also be sure to follow me so that you never miss any upcoming market catalyst events. If you find this helpful and would like to view more of my work, consider subscribing to my Patreon. Link in my bio. $SPY $ABBV $GD $TSM $QQQ $BTC.X $HOOD $TLRY $LEVI $AAL $DAL $UAL $LUV $CHNG $UNH $LMT
post media
Comments on Inflation from Company Executives
Inflation is not slowing down. Last week, the BLS reported a 0.6% rise in the CPI during January, well over analyst estimates and bringing the annual rate of inflation to 7.5%.

The latest Fincredible MacroTalk goes over company earnings calls to analyze what executives are saying about inflation. Here are a few quotes from the post regarding cost inflation drivers as well as planned price increases by companies.

Inflation Drivers:

Future Price Increases:

If you'd like to read the whole post, here's the URL: Fincredible MacroTalk February 9th: Inflation

Upcoming Earnings Calendar (Jan 24-28th) - BIG week ahead!
Hey guys! Here's the upcoming earnings calendar! Definitely a very busy week ahead. Here's what I'll be looking at:

  • $MSFT - Can Azure keep its growth rate? Will a slowdown cause a sell-off similar to the one $NFLX had?
  • $TSLA - Post earnings reaction. This is one of the few high-growth stocks that has shown relative strength. Let's see if this changes post ER.
  • $LOGI - Is demand for gaming peripherals still strong? May be an early indicator of videogaming strength.
  • $AAPL - It's always interesting to hear what Apple is doing.
  • $V - Data on consumer spending.
  • $CVX - General comments on the energy market.

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

MON:

TUE:

WED:

THU:

FRI:
post media
Three Highlights from the Levi Strauss Earnings Calls
$LEVI is up over 8% following its earnings report yesterday. Here are three highlights from the earnings call that should have investors happy.

  • Revenues are back to pre-pandemic levels: "Revenues were $1.5 billion, up 41% versus Q3 2020 and up 3% versus pre-pandemic levels of Q3 2019 with profitability at a multi-decade high, well exceeding our expectations."
  • Margins have expanded despite supply chain issues and inflation: "Relative to 2019, reported adjusted EBIT margins were up 260 basis points. Adjusted gross margin of 57.5% expanded 450 basis points compared to 2019 despite a headwind of 70 basis points from higher air freight. Currency benefits were negligible. Three quarters of the margin expansion is sustainable, resulting from a higher proportion of sales from our direct-to-consumer channel, the price increases we have taken across all channels. and a number of geographies, a higher share of women's, healthier U.S. wholesale mix and better margin management using AI and machine learning."
  • Beyond Yoga acquisition could further enhance margins and expand the company's TAM: "The acquisition puts us in the fast-growing and high-margin premium active wear category with a successful and authentic brand that is rooted in body positivity, inclusivity, diversity and quality. I believe the combination of their category expertise, deep consumer understanding and outstanding product with our expertise and capability and brand building, retail operations, men's and international is a powerful combination that makes me confident we can meaningfully and profitably scale this brand for the long term."

If you'd like to review the full earnings call, click here.
Featured earnings for the week of Oct 4
On days like today, probably grateful to have a slow news/earnings week. Nonetheless, some interesting companies. I'm particularly interested in listening to $PEP and $STZ commentary on the reopening and supply chain!

And a friendly reminder, days like today can offer good buying opportunities. I personally added positions to stocks I already own in $DBX $ESTC and $GOOG. Nothing's changed in my thesis except they are 2 - 6% cheaper today.

Good luck!

post media
Eric Pelnik's avatar
$273.5m follower assets
Earnings this week
This is a light week for earnings. Are there any other interesting market-related events going on?

Monday, April 5th
None of interest

Tuesday, April 6th
$PAYX Paychex

Wednesday, April 7th
None of interest

Thursday, April 8th
$WDFC WD-40
$STZ Constellation Brands
$LEVI Levi Strauss

Friday, April 9th
None of interest

Sources: Business Insider, Google Finance, Yahoo Finance
Eric Pelnik's avatar
$273.5m follower assets
Earnings this week
📞 Which calls are you most excited about?

Monday, January 25th
$SMG Scotts Miracle-Gro

Tuesday, January 26th
$MSFT Microsoft
$JNJ Johnson & Johnson
$VZ Verizon
$SBUX Starbucks
$AMD Advanced Micro Devices
$AXP American Express
$MMM 3M
$GE General Electric
$LMT Lockheed Martin

Wednesday, January 27th
$AAPL Apple
$TSLA Tesla
$FB Facebook
$BA Boeing
$SYK Stryker
$BX Blackstone
$LEVI Levi Strauss
$VFC VF Corp

Thursday, January 28th
$V Visa
$MA MasterCard
$CMCSA Comcast
$MCD McDonald's
$MO Altria
$TEAM Atlassian
$WBA Walgreens Boots Alliance
$LUV Southwest Airlines
$JNPR Juniper Networks
$NOC Northrop Grumman
Friday, January 29th
$PSX Phillips 66
$CHD Church & Dwight
$CAT Caterpillar
$CVX Chevron

Sources: Business Insider, Google Finance, and Yahoo Finance
Eric Pelnik's avatar
$273.5m follower assets
Earnings this week
Monday, Oct 5th

none of interest

Tuesday, Oct 6th

$PAYX Paychex

$LEVI Levi Strauss

Wednesday, Oct 7th

none of interest

Thursday, Oct 8th

$DAL Delta Air Lines

$DPZ Domino's Pizza

Friday, Oct 9th

none of interest

Sources: Google Finance, Business Insider, and Yahoo Finance
Next
Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.