Why V.F. Corporation (VFC) Crashed on Thursday

We recently compiled a list of the 10 Stocks Drop Double Digits as Investor Caution Lingers. In this article, we are going to take a look at where V.F. Corporation (NYSE:VFC) stands against the other  stocks.

The stock market fell into the negative territory on Thursday, as investor caution lingered over the ongoing trade tensions among some of the world’s largest economies.

The tech-heavy Nasdaq posted the largest loss, down 2.61 percent, followed by the S&P 500 with 1.78 percent, and the Dow Jones with 0.99 percent.

Ten companies mirrored a broader market decline, dropping by as much as double digits during the end of the session. In this article, we named Thursday’s 10 biggest losers and detailed the reasons behind their decline.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A model walking down the runway wearing a fashionable and performance-based apparel designed by the company.

V.F. Corporation (NYSE:VFC)

V.F. Corporation (NYSE:VFC) saw its share price decline by 12.32 percent on Thursday to close at $20.56 apiece as investors shunned updates and developments from its Investor Day, where it noted key achievements over the past 18 months and instead focused on the potential risks it would face from the ongoing trade war.

On Thursday, V.F. Corporation (NYSE:VFC) announced a number of achievements including cost reduction, lower net debt, improved business performance in the Americas, and an advanced Vans brand turnaround.

However, outlook for the retail industry became more bearish given the recently-implemented higher tariffs on goods from China, Mexico, and Canada that could potentially impact V.F. Corporation (NYSE:VFC)’s performance, with expectations of higher costs of importation, manufacturing, and raw materials.

V.F. Corporation (NYSE:VFC) designs, manufactures, and markets branded apparel such as The North Face, Timberland, Vans, Dickies, Jansport, and Kipling. It currently owns various facilities globally, including China, Mexico, and Canada, all of which have been slapped with higher taxes by President Donald Trump.

Overall VFC ranks 9th on our list of Thursday’s biggest losers. While we acknowledge the potential of VFC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VFC but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.