Is Now The Time To Look At Buying Levi Strauss & Co. (NYSE:LEVI)?

Levi Strauss & Co. (NYSE:LEVI), is not the largest company out there, but it saw a significant share price rise of 26% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading at close to its 52-week high. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Levi Strauss’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Levi Strauss

What's The Opportunity In Levi Strauss?

Great news for investors – Levi Strauss is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $23.42, but it is currently trading at US$18.00 on the share market, meaning that there is still an opportunity to buy now. However, given that Levi Strauss’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Levi Strauss generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Levi Strauss' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since LEVI is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on LEVI for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LEVI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into Levi Strauss, you'd also look into what risks it is currently facing. At Simply Wall St, we found 3 warning signs for Levi Strauss and we think they deserve your attention.

If you are no longer interested in Levi Strauss, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.