Is Levi Strauss & Co. (LEVI) A Good Stock To Buy Now?

Is LEVI a good stock to buy? We came across a bullish thesis on Levi Strauss & Co. on ARMR Report Be The Smart Money’s Substack by Bret Rosenthal. In this article, we will summarize the bulls’ thesis on LEVI. Levi Strauss & Co.'s share was trading at $23.36 as of April 21st. LEVI’s trailing and forward P/E were 17.18 and 12.80 respectively according to Yahoo Finance.

Levi Strauss & Co. (LEVI) is undergoing a structural transformation from a legacy wholesale-driven apparel company into a direct-to-consumer (DTC)-led global lifestyle brand, creating a compelling long-term investment case despite near-term margin pressure. The company has streamlined its portfolio following the divestiture of Dockers, sharpening its focus on its core Levi’s brand and the fast-growing Beyond Yoga segment, which is gaining traction in the premium athleisure market.

Recent performance reflects this strategic shift, with Q1 2026 revenues rising 14.1% year-over-year to $1.74 billion and DTC now contributing 52% of total sales, highlighting stronger control over pricing, customer relationships, and brand experience. While operating margins declined to 11.4% due to elevated marketing spend and tariff headwinds, these investments are directly tied to scaling the DTC ecosystem and driving sustainable long-term growth.

International markets, particularly Europe and Asia, are delivering robust double-digit expansion, reinforcing Levi’s global brand strength and diversification benefits. Beyond Yoga’s 23% growth further supports expansion into higher-margin categories, enhancing the company’s earnings profile over time. Capital allocation remains shareholder-friendly, with active buybacks, dividends, and a solid balance sheet providing financial flexibility.

Trading at a notable discount to its historical valuation despite improved growth prospects and raised earnings guidance, LEVI offers an attractive entry point. As marketing intensity normalizes and DTC efficiencies scale, margin recovery combined with sustained top-line growth positions Levi Strauss & Co. for meaningful multiple expansion and long-term value creation.

Previously, we covered a bullish thesis on V.F. Corporation (VFC) by Fun-Imagination-2488 in April 2025, which highlighted the turnaround under new leadership, portfolio optimization, debt reduction, and margin recovery across key brands. VFC’s stock price has appreciated by approximately 83.98% since our coverage. Bret Rosenthal shares a similar view but emphasizes on Levi Strauss & Co.’s structural shift to a DTC-led model and global growth driving long-term margin expansion.

Levi Strauss & Co. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held LEVI at the end of the fourth quarter which was 37 in the previous quarter. While we acknowledge the risk and potential of LEVI 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 LEVI and that has 10,000% upside potential, check out our report about this cheapest AI stock.