Kontoor Brands, Inc. (NYSE:KTB) is one of the stocks in Jim Cramer’s spotlight. Cramer recommended buying the company stock during the episode. He said:
“It is time to buy Kontoor Brands… I’m ready to pull the trigger now… Kontoor’s worked its way back to the mid-60s on a series of positive developments, and I think it is time to jump on the bandwagon. First, given that the real breakdown for the stock started with the disappointing… guidance in February. It was encouraging when Kontoor reported a healthy quarter in early May…
The next sign that we got was about a month ago in early June when analysts at Goldman Sachs reinstated coverage of Kontoor with a Buy rating and an $85 price target. The Goldman analysts were excited, like me, about that Helly Hansen acquisition. They also cited healthy underlying trends in the base business, a significant growth optionality as Kontoor integrates the Helly Hansen brand, and Kontoor’s relatively attractive positioning as a result of current tariff policy…
… When you consider fundamentals, well, there’s really a lot to like here. Even if the stock’s recovered a bit from its April lows, it’s still only back to the high 60s today, down 30% from its early 2025 highs and essentially back at the same level where it was trading a year ago. Kontoor stock remains very cheap. It’s just trading at just over 12 times the midpoint of the new earnings forecast.
Also supports a generous 3% plus dividend yield. Even if you’re worried about the tariffs and want to give that earnings forecast a bit of a haircut, say a 15% haircut, then the stock would still be trading at less than 15 times this year’s earnings estimates, much, much cheaper than the average name in the S&P 500.
Here’s the bottom line: I have been feeling better and better about Kontoor Brands for a while now, and after last night’s deluge of good news and the acquisition of Helly, I say we should stop thinking about it and just buy the darn stock already.”
A view of a designer staff in front of a studio with lifestyle apparel they designed.
Kontoor (NYSE:KTB) designs, markets, and sells denim and lifestyle apparel under brands like Wrangler, Lee, and Rock & Republic. The company’s products are distributed through retail stores, company outlets, and online platforms.
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Disclosure: None. This article is originally published at Insider Monkey.
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