Is the New Management at VF Corp (VFC) Making The Right Changes? - InvestingChannel

Is the New Management at VF Corp (VFC) Making The Right Changes?

Investment management company Curreen Capital released its third quarter 2024 Investor letter. A copy of the letter can be downloaded here. Although the overall market has seen an increase, many of the “ugly duckling” stocks the firm is concentrating on have become cheaper. This creates excellent opportunities to buy quality businesses while they are temporarily out of favor in the stock market. In the third quarter, the fund was up 0.9% compared to 5.89% for the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Curreen Capital highlighted stocks like V.F. Corporation (NYSE:VFC) in the Q3 2024 investor letter. Headquartered in Denver, Colorado, V.F. Corporation (NYSE:VFC) designs, manufactures, and distributes branded lifestyle apparel, footwear, and related products. The one-month return of V.F. Corporation (NYSE:VFC) was 6.39%, and its shares gained 45.17% of their value over the last 52 weeks. On November 7, 2024, V.F. Corporation (NYSE:VFC) stock closed at $21.63 per share with a market capitalization of $8.421 billion.

Curreen Capital stated the following regarding V.F. Corporation (NYSE:VFC) in its Q3 2024 investor letter:

“V.F. Corporation (NYSE:VFC) manages apparel brands, including Dickies, The North Face, Timberland, and Vans. Under its prior CEO, the company’s poor capital allocation (including overpaying for Supreme and maintaining a too-high dividend after spinning out Kontoor) forced it to pause its model of using excess free cash flow to acquire good brands and manage them well. The company has now cut its dividend (twice) to a reasonable level and brought on a new CEO who has a track record of successfully turning around businesses. I believe that the company has good brands, the skills to manage them well, and a management team that is righting the ship. VF Corp currently trades at an attractive upside-to-downside ratio.”

5 Best Cities for Modeling in the World A model walking down the runway wearing a fashionable and performance-based apparel designed by the company.

V.F. Corporation (NYSE:VFC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held V.F. Corporation (NYSE:VFC) at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the potential of V.F. Corporation (NYSE:VFC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed V.F. Corporation (NYSE:VFC) and shared the list of companies that are facing activist pressure. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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