Trading Levi Strauss After Q2 Earnings Beat & Dividend Boost

July 12, 2022 18:34

Levi Strauss (LEVI) is an iconic clothing company known for its Levi’s brand of jeans. The company posted a stronger than expected second-quarter earnings report while also announcing a boost to its dividend payout to shareholders.  

Data from the 13F filing report also shows that hedge funds have been increasing their positions in the stock over the past several quarters. Learn more about this and how to trade Levi’s share price below.  

Stock: Levi Strauss & Co
Exchange: NYSE
Symbol for Invest.MT5 Account: LEVI
Date of Idea: 13 July 2022
Time Line: 1 - 6 months
Entry Level: $17.80
Target Level: $26.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Why Trade Levi Strauss Stock?

In its most recent earnings report for the second quarter of 2022, Levi’s posted a strong set of results that surprised investors in the current economic climate.  

Group revenues surged 15% to $1.47 billion which beat analysts' forecasts of $1.43 billion. This led to earnings per share rising 26% from the same quarter last year. Direct-to-consumer channel sales led the sales increase by 35% year over year.  

The results surprised investors as recession fears have caused concern for consumer discretionary stocks such as Levi Strauss. However, the company was affected by supply chain constraints causing an estimated $60 million in lost sales.  

Data from the 13F filing report of 203 hedge funds submitted to the Securities & Exchange Commission (SEC) shows that hedge funds have been increasing their positions in the company over the last several quarters.  

Source: TipRanks, 13 July 2022 

The company, which is based in San Francisco, also announced plans to increase its quarterly dividend payout from 10 cents per share to 12 cents per share. The management team also provided positive guidance for 2022 with 11% to 13% revenue growth. 

However, consumer discretionary stocks such as Levi Strauss could come under pressure if the fears of a recession are realised.  

Levi Strauss Stock Forecast - What do the Analysts Say? 

According to analysts polled by TipRanks for a Levi Strauss stock forecast in the past 3 months, there are currently 7 buy, 0 holds and 0 sell ratings on the stock, although this is only based on 7 analysts overall. The highest price level for a Levi Strauss stock forecast is $33.00 with the lowest price target at $19.00. 

The average price target for a Levi Strauss stock forecast is $26.14 which represents more than 54% upside from current levels, at the time of writing.   

Source: TipRanks, 13 July 2022 

An Example Trading Idea for the Levi Strauss Stock Price

An example trading idea for Levi’s share price could be as follows:  

  • Buy the stock on a break above $17.80 to allow for current market volatility. 
  • Target just below the average analyst price target at $26.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Levi Strauss shares:  
    • If target is reached = $82.00 potential profit ($26.00 - $17.80 * 10 shares).

It’s wise to remember that the share price is unlikely to go up in a straight line and it may even go much further down before it rises, especially considering the recent sell-off in global stock markets.  

Therefore, be sure to exercise good risk management which is one of the most important aspects of trading successfully. You should always know how much you could potentially lose on a trade and the risks involved.  

Another factor to consider is the commission as these can eat into your profits. With the Admirals Invest.MT5 account you can buy US stocks from $0.02 per share. This means buying 10 shares in Levi Strauss stock would 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 would result in a commission of just $1 overall! 

How to Buy Levi Strauss Stock in 4 Steps  

With Admirals, you can buy shares in companies like Levi Strauss with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the Trader’s Room.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for LEVI at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.   

Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance. 

Click on the banner below to buy Levi Strauss stock today! ▼▼▼ 

Do You See the Levi Strauss Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Levi Strauss's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.