We lately revealed a listing of 10 Michael Burry Stocks with Huge Upside Potential. On this article, we’re going to check out the place V.F. Corporation (NYSE:VFC) stands in opposition to different Michael Burry shares with large upside potential.
Michael Burry, founder and supervisor of Scion Asset Management, is finest recognized for predicting and benefiting from the housing bubble’s collapse within the mid-2000s. His daring contrarian guess was famously chronicled within the guide and movie “The Large Brief.” Burry’s funding technique attracts closely from the rigorous market evaluation and ideas outlined in Benjamin Graham and David Dodd’s 1934 guide “Safety Evaluation.” The guide championed the deserves of monetary assertion evaluation, highlighting the significance of intrinsic worth and structured funding ideas.
That mentioned, Burry has by no means shied away from placing his personal distinct stamp on Wall Avenue’s time-tested ideas. By using complicated monetary instruments, akin to spinoff securities and short-selling, Burry has amassed a fortune, difficult standard market knowledge. His 2001 Scion Worth Fund letter supplies an enchanting perception into his contrarian outlook, which prioritizes long-term worth over short-term worth fluctuations. Burry makes it clear that to attain important long-term returns, he’s prepared to tolerate short-term volatility. He said:
“I’ll all the time select the greenback invoice carrying a wildly fluctuating low cost somewhat than the greenback invoice promoting for a fairly secure premium.”
He additionally has no qualms about making important investments in just a few shares that he believes are undervalued, a tactic the investor employed to strengthen Scion’s holdings on the finish of 2024.
Within the quarter that ended on December 31, 2024 simply earlier than DeepSeek’s synthetic intelligence breakthrough sparked a $1.3 trillion surge in Chinese language tech shares, Michael Burry offloaded a few of his investments within the nation’s tech shares. The strikes got here amid a interval of excessive volatility for Chinese language shares, when buyers seemed to be shedding religion in Beijing following the implementation of a stimulus package deal in late September. The federal government’s actions triggered a wild rally till early October, although momentum waned as a consequence of a property disaster, a poor financial outlook, and dissatisfaction with the scope of fiscal stimulus within the following months.
For this text, we examined Scion Asset Administration’s This autumn 2024 13F filings to checklist down Michael Burry’s inventory picks with the best upside potential. We ranked the businesses in ascending order of their upside potential. These equities are additionally widespread amongst elite hedge funds.
Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we will outperform the market by imitating the highest inventory picks of one of the best hedge funds. Our quarterly publication’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Might 2014, beating its benchmark by 218 share factors (see more details here).
V.F. Corporation (VFC): Among Michael Burry Stocks with Huge Upside Potential
A mannequin strolling down the runway sporting a modern and performance-based attire designed by the corporate.
Scion Asset Administration’s This autumn Stake: $4.29 million
Analyst Upside as of Might 9: 47.93%
Variety of Hedge Fund Holders: 36
V.F. Corporation (NYSE:VFC), previously often known as Self-importance Honest, designs, distributes, and markets branded life-style footwear, equipment, and clothes. The corporate operates in three segments: Energetic, Outside, and Work, with manufacturers together with Vans, The North Face, and Timberland. It sells primarily to mass retailers, shops, independently operated partnership shops, nationwide chains, specialised shops, and direct-to-consumer platforms.
On April 30, Wells Fargo analyst Ike Boruchow raised V.F. Corporation (NYSE:VFC)’s shares from Underweight to Equal Weight whereas reducing the value goal to $12 from $18. Boruchow remarked that the bear case for V.F. Corporation appeared to have absolutely developed. He acknowledged that VF Corp has been one of many worst performers in its trade, however feels that the market has now absolutely accounted for the delayed restoration of its Vans model. The analyst talked about that whereas there are nonetheless worries concerning V.F. Corporation’s stability sheet and free money circulation, the danger/reward profile has grow to be extra balanced, resulting in a shift to a impartial stance.
Madison Small Cap Fund said the next concerning V.F. Corporation (NYSE:VFC) in its Q4 2024 investor letter:
“We initiated a brand new funding place in V.F. Corporation (NYSE:VFC) (~8$b market cap). Previously often known as Self-importance Honest, VF is the proprietor of a portfolio of attire and footwear manufacturers, particularly Vans, The North Face, and Timberlands, which make up the lion’s share of the revenues. VFC is in a particular state of affairs with comparatively new administration, executing a turnaround technique that we imagine is value-maximizing and really shareholder-friendly. The corporate lately offered considered one of its portfolio manufacturers, Supreme, for $1.5b and used the proceeds to pay down debt. They’ve lowered prices throughout the portfolio, together with shrinking the Van’s retail enterprise.
Total, VFC ranks 2nd on our checklist of Michael Burry shares with large upside potential. Whereas we acknowledge the potential for VFC as an funding, our conviction lies within the perception that some AI shares maintain better promise for delivering larger returns and doing so inside a shorter timeframe. There’s an AI inventory that went up for the reason that starting of 2025, whereas widespread AI shares misplaced round 25%. In case you are on the lookout for an AI inventory that’s extra promising than VFC however trades at lower than 5 instances its earnings, try our report about this cheapest AI stock.
