VF Stock Sports Healthy Risk-Reward Profile

Barclays upgraded VFC to “overweight”

Barclays upgraded the shares of apparel company VF Corporation (NYSE:VFC) to “overweight” from “equal weight,” and hiked its price target to $22 from $19. The analyst in coverage cited a healthy risk-reward profile, noting the owner of brands Vans and The North Face will begin to see the positive impact of recent changes this fall as well as in 2025.

There’s potential for more upgrades, with 16 of 20 analysts in question still rating VFC a  “hold” or worse coming into today. Plus, short interest shed 5.8% over the last month, yet the 41.45 million shares sold short account for 10.7% of the equity’s total available float, or more than one week’s worth of pent-up buying power.

VF is 4.1% higher before the bell, set to open at new year-to-date high of $19.15 with support from the 40-day moving average. Looking to erase its modest 2024 deficit of 2.1%, VFC also boasts a 6.2% year-over-year gain.

Puts have been overwhelmingly popular, per VF stock’s 50-day put/call volume ratio of 1.28 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 99% of readings from the past year.

For those looking to get in on the action, options look like the ideal route. Premium is cheap right now, per VFC’s Schaeffer’s Volatility Index (SVI) of 47%, which sits in the 17th percentile of annual readings.

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