Earnings stability rating

Among apparel stocks, most don't pay a dividend.
Of those that do, the top-rated stock is VF Corp. (VFC)
The North Carolina-based company, which is No. 18 in the Big Cap 20, holds a slew of well-known brand names, including Wrangler, Lee, JanSport, The North Face and Timberland.
Over the years, VF has grown through acquisitions. For example, Lee was acquired in 1969, JanSport and Wrangler in 1986, The North Face in 2000 and Timberland in 2011.
Last year's $2.3 billion buyout of Timberland was VF's largest ever, and expanded VF's footprint in the outdoor clothing space.
In a New America article in March, Cowen & Co. analyst John Kernan told IBD that VF "could be poised to make another acquisition in the back half of this year."
The analyst believes the acquisition "will be focused in outdoor active sports, and we think it will be a major international brand, probably in Europe."
VF derives about two-thirds of its revenue from the U.S. The balance is from Europe, Canada, Asia, Mexico and Latin America.

The company said in its latest 10-K report that it is focusing more on outdoor attire, because profit margins and growth rates are higher in that space than in VF's other businesses.
In 2011, VF's pretax margin was 12.7%, the best in the past five years.
Annual earnings dropped 8% on a revenue decline of 6% in recessionary 2009. Since then, EPS rebounded 25% each in 2010-11 as revenue rose 7% and 23%.
The Street expects earnings to rise 17% this year on 17% sales growth.
The three-year earnings stability rating is 4, and the five-year rating is 9. The gauge runs from 0 (calm) to 99 (wild). The current annual yield is 1.9%.
One angle to consider is VF's No. 2 status in its industry group in Stock Checkup at Investors.com. The No. 1 stock is Michael Kors (KORS), an upscale apparel marketer with much stronger fundamentals, though it pays no dividend. Buying the best on a breakout and taking income out of capital appreciation might be the best strategy.