Levi Strauss (LEVI): Valuation Check After Revenue Growth and New Category Expansion Boost Brand Momentum

Levi Strauss (LEVI) kicked off the year with higher net revenues and organic global sales growth for the Levi's brand, a clear sign that its push into beauty, accessories, and home goods is gaining traction. See our latest analysis for Levi Strauss. That backdrop helps explain why the stock’s 25.95% year to date share price return and 32.01% one year total shareholder return look solid, even with a softer 90 day share price patch as investors reassess growth and execution risk. If Levi’s brand momentum has you rethinking your watchlist, it might be worth scanning fast growing stocks with high insider ownership to see which other companies with skin in the game are starting to break out. But with Levi Strauss trading below analyst targets and still enjoying double digit profit growth, investors now face a tougher question: Is there still meaningful upside from here, or has the market already priced in its next chapter? Most Popular Narrative Narrative: 19.7% Undervalued With Levi Strauss last closing at $21.94 versus a most popular narrative fair value near $27.31, the spread points to meaningful upside if the thesis plays out. Levi's decisive shift to a Direct to Consumer first business, now representing over half of sales, is delivering higher margins (DTC EBIT up 400bps YTD), greater control over brand experience, and faster innovation cycles driving sustained improvements in net margins and future earnings. Read the complete narrative. Want to see how modest top line growth, rising margins, and a lower future earnings multiple still add up to a higher value than today? The full narrative reveals the math behind that gap. Result: Fair Value of $27.31 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, lingering tariff exposure and flat Asia growth still threaten margins and international diversification, which could potentially undermine the case for sustained multiple expansion. Find out about the key risks to this Levi Strauss narrative. Build Your Own Levi Strauss Narrative If you see the story differently or want to dig into the numbers yourself, you can build a custom view in minutes with Do it your way. A great starting point for your Levi Strauss research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision. Ready for your next investing move? Smart investors do not wait for the market to spell things out. They actively hunt for the next edge using focused stock ideas tailored to their strategy. Explore potential income streams by targeting companies in these 13 dividend stocks with yields > 3% that aim to reward shareholders with consistent cash returns. Position yourself ahead of structural shifts by filtering for innovators among these 80 cryptocurrency and blockchain stocks shaping payments, infrastructure, and blockchain adoption. Look for possible pricing gaps by zeroing in on these 906 undervalued stocks based on cash flows where market expectations may be lagging behind improving fundamentals. 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.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech