Below is a brief note from CEO Keith McCullough on why we're adding VF Corp. (VFC) to the long side of Investing Ideas today:
"It surprises Brian McGough that VF Corp (VFC) is down over -5% (on light volume albeit) after what he thought was a good quarter."
Here's an excerpt from Brian McGough's Institutional Research note:
"The underlying metrics were simply stellar with revenue 17% in constant currency (plus 8% pure organic). Definitely spent up on SG&A, excluding which could have beat the consensus by an extra nickel. But why waste a beat on a stub period? Company just set up for another beat in a quarter that’s actually analyzable by the consensus (no more stub or acquisition opacity). I like this one long side. One of the best (and most stable) earnings/cash flow upside algos in larger cap retail."
Keith continues: "That comment and an immediate-term #oversold signal gets you the @Hedgeye Buy signal here."
