• Levi Strauss (LEVI) shows strong technical momentum, hitting a new 52-week high on Sept. 2.
• LEVI maintains a 100% “Buy” Barchart opinion.
• Shares are up 18% over the past year and 30% in the year to date.  
• Analyst sentiment is positive, but I caution LEVI is volatile and speculative.

Today’s Featured Stock

Valued at $8.9 billion and known by everyone, Levi Strauss (LEVI) designs and markets jeans, casual wear, and related accessories. Its products are sold through chain retailers, department stores, online sites, and brand-dedicated retail stores and shop-in-shops 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. LEVI checks those boxes. Since the Trend Seeker signaled a buy on Aug. 13, the stock gained 6.72%.

LEVI Price vs. Daily Moving Averages:

Barchart Technical Indicators for Levi Strauss

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Levi Strauss hit a new 52-week high of $22.83 in intraday trading on Sept. 2.

• Levi Strauss has a Weighted Alpha of +30.31.
• LEVI has an 100% “Buy” opinion from Barchart.
• The stock gained 17.66% over the past year.
• LEVI has its Trend Seeker “Buy” signal intact.
• Levi Strauss is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 14 new highs and gained 12.59% in the last month.
• Relative Strength Index (RSI) is at 65.34%.
• There’s a technical support level around $22.30.

Don’t Forget the Fundamentals

• $8.9 billion market capitalization.
• 15.83x trailing price-earnings ratio.
• 2.49% dividend yield.
• Revenue is expected to be down by 2.87% this year but grow again by 4.81% next year.
• Earnings are projected to increase by 4.48% this year and an additional 11.07% next year

Analyst and Investor Sentiment on Levi Strauss

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts like Levi Strauss.

• The Wall Street analysts tracked by Barchart have issued 9 “Strong Buy” and 3 “Hold” opinions on the stock.
• Their price targets are between $19-$28.
• Value Line gives the stock an “Average” rating with a price target of $24.
• CFRAs MarketScope Advisor rates it a “Buy.”
• Morningstar thinks the stock is 12% undervalued with a fair value of $25.79.
• 89 investors following the stock on Motley Fool think the stock will beat the market while 30 think it won’t.
• 13,060 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line on Levi Strauss

Levi Strauss is a brand we all know, currently has momentum, and is hitting new highs. With its clothing known around the world, it would seem its product line will be in high demand.

I caution that LEVI is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.