Trading Levi Strauss After Q2 Earnings Beat & Dividend Boost
Levi Strauss (LEVI) is a legendary clothing company known for its Levi's jeans brand. The company released a stronger-than-expected second-quarter earnings report while also announcing an increase in dividend payments to shareholders.
Data from the 13F filing report also shows that hedge funds have increased their positions in stocks over the past few quarters. Learn more about this and how to trade Levi's stock price below.
Every trade involves high risk and you can lose more than your risk in the trade. Never invest more than you can afford to lose because some trades will lose and some trades will win. Start small to understand your own risk tolerance, or practice on a demo account. Build your knowledge first before investing.
Why trade? Levi Strauss stock?
In its latest earnings report for the second quarter of 2022, Levi's released a series of strong results that surprised investors in the current economic climate.
Consolidated revenue rose 15% to $1.47 billion, beating analyst estimates of $1.43 billion. This resulted in a 26% increase in earnings per share from last year's quarter. Direct-to-consumer sales led to a 35% year-over-year increase in sales.
The results surprised investors as recession fears have raised concerns for consumer stocks such as Levi Strauss. However, the company was impacted by supply chain constraints that resulted in lost sales of approximately $60 million.
Data from 203 13F hedge fund reports filed with the Securities & Exchange Commission (SEC) show that the hedge fund has increased its position in the company in recent quarters.
The San Francisco-based company also announced plans to increase its quarterly dividend payout to 12 cents per share from 10 cents per share. The management team also provides a positive direction for 2022 with revenue growth of 11% to 13%.
Levi Strauss stock forecast – What dotdia analysts have to say?
According to analysts surveyed by TipRanks for Levi Strauss stock forecasts over the past 3 months, there are currently 7 buy, 0 hold, and 0 sell ratings for the stock, although this is based only on a total of 7 analysts. The highest price level for the Levi Strauss stock forecast is $33.00 and the lowest price target is $19.00.
The average price target for the Levi Strauss stock forecast is $26.14, which is an increase of more than 54% from its current level at the time of writing.
Exemplary trading idea for that Levi Strauss Stock price
An example of Levi's stock price trading idea might look like this:
Buy the stock on a break above $17.80 to account for current market volatility.
Target just below the analyst average price target of $26.00.
Keep your risk low with a maximum of 5% of your total account.
Timeline = 1-6 months
If you buy 10 shares of Levi Strauss:
If target is met = $82.00 potential profit ($26.00 – $17.80 * 10 shares).
It is wise to keep in mind that stock prices are unlikely to rise in a linear fashion and could actually drop further before bouncing higher, especially given the recent sell-off in global stock markets.
Therefore, pay attention to good risk management, which is one of the most important aspects of successful trading. You should always be aware of how big your potential loss is in trading and the risks involved.
Another factor to consider is the commission as it can affect your profits. The Admirals Invest.MT5 account allows you to buy US stocks starting at $0.02 per share. This means that buying 10 shares of Levi Strauss will result in a commission of $0.20 ($0.02 * 10 shares).
There is a low minimum transaction fee of $1. So the example trading idea above will generate a total commission of just $1!
how to buy Levi Strauss Stock in 4 steps
With Admirals, you can buy stock in companies like Levi Strauss for a low commission of just $0.02 per share and a low minimum commission of just $1 for US stocks.
Open an account with the Admiral to gain access to the dealer room.
Click Trade on your live or demo account to open the web platform.
Look for LEVI at the bottom of the Market Watch window and drag the symbol onto the chart.
Use the one-click or right-click trading feature and open a trading ticket to enter your trade size, stop loss and take profit levels.
Source: Admiral MetaTrader 5 Web. Past performance is not a reliable indicator of future results or future performance.
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