On Thursday, CNBC's Jim Cramer highlighted VF Corp and Kontoor Brands as promising stocks for investors looking beyond the struggling artificial intelligence sector. VF Corp, which owns brands like Vans and The North Face, has seen its stock price decline significantly, making it more appealing at current valuations.
Analysts from Truist and Piper Sandler have upgraded VF Corp to 'buy' with a price target of $20, suggesting a potential upside of about 17%. Cramer noted that recent surveys indicate a shift in consumer preferences towards non-athletic footwear, which could benefit Vans, despite its recent sales struggles.
Meanwhile, Kontoor Brands, known for Wrangler and Lee, received an upgrade from Jefferies with a new price target of $89, indicating a 22% upside. The firm believes that a resurgence in denim popularity could favor Kontoor, especially with its planned $400 million share repurchase program.
Cramer emphasized that both companies present compelling buying opportunities as they adapt to changing fashion trends and consumer demands