Up 20% This Year, Is Levi Strauss Worth a Look?

The company saw some attention last week when it reported better-than-expected earnings results, in which it raised its guidance for the year (which is quite significant)

Additionally, The question now becomes: After such a run in the stock price, is there still value here

At the same time, The second quarter There's a lot to in Levi's most recent quarter, given the current landscape

Furthermore, Image source: Getty Images, considering recent developments

Additionally, Net revenues rose 6% for a reported basis, and there was an organic basis increase of 9% versus a year ago

Additionally, Earnings were substantially better than the year prior

Levi Strauss reported Q2 diluted net income of $0, in today's market environment. 17 per, versus earnings of $0. 04 per in 2024

At the same time, D guidance The good news ext to the company's full-year outlook, though I find it slightly less exciting than some do, amid market uncertainty

This leads to the conclusion that wasn't all good news, however, in today's market environment

Gross margins are expected to expand by 80 basis points, versus a previous estimate of "up to" 100 basis points (remarkable data)

This analysis suggests that main reasoning for this decline is based on the effect of tariffs

Granted, we're going on an adjusted basis here, but it would give the stock a forward price-to-earnings (P/E) ratio of roughly 16 times full-year earnings

This tells us that is a positive, as according to fullratio

Conversely, Com, Levi's historical average over the last seven years is 38, considering recent developments

With that valuation, the stock seems pretty fairly priced for what is happening now, in today's financial world

Furthermore, The question is: How badly will tariffs mess things up

The evidence shows is a very difficult question to answer, in today's financial world

For one, we don't always know exactly what President Donald Trump's tariffs will be

They can shift and change as negotiations continue

Additionally, On the other hand, Levi's noted that it plans to "absorb" as much of the tariffs as it can

I always say to err on the side of caution

Who can say for sure how much tariffs will truly end up affecting Levi's sales figures

I think this is a stock that should be rated as a "hold" or "sell" if you've already been involved, as there are gains to be taken

Furthermore, This does not seem a time to add a new position, in this volatile climate

On the other hand, The stock took off last week, and baked in a lot of what could be expected this year

I credit the company on its stronger results, but historically this is a stock that has big ups, ed by heavy downward drops as demonstrated in this five-year chart

Moreover, For new buyers, I say keep an eye on this one for any pullbacks that present better opportunities, but don't chase these first-quarter results

What the re reveals is rest of the year might not be that exciting, in light of current trends

David Butler has no position in any of the stocks mentioned

Additionally, The Motley Fool has no position in any of the stocks mentioned

The evidence shows Motley Fool has a disclosure policy (this bears monitoring), in today's market environment.