Kontoor Brands (KTB) is back in focus after its Lee label partnered with Goody on a limited edition hair accessories collection, marking Lee’s first move into hair and beauty, stocked exclusively at Walmart and select online channels.

The Goody collaboration comes at a time when Kontoor Brands’ share price has softened. The 30 day share price return is 10.60% and the 90 day share price return is 29.63%, while the 1 year total shareholder return of 27.14% contrasts with a 3 year total shareholder return of 42.21% and a 5 year total shareholder return of 68.52%. This suggests that shorter term momentum has faded relative to longer term gains.

If you are looking beyond denim and accessories for other consumer names with staying power, it could be worth scanning fast growing stocks with high insider ownership as a starting point for ideas.

With the shares sitting 40% below one estimate of intrinsic value and trading at a roughly 48% discount to the average analyst price target, you have to ask: is this a genuine mispricing or is the market already factoring in future growth?

Most Popular Narrative: 32.6% Undervalued

Kontoor Brands’ most followed narrative assigns a fair value of US$88.25 per share versus the last close at US$59.49, a sizable valuation gap that hinges on how future growth and margins play out.

The integration of Helly Hansen is providing Kontoor Brands with strong momentum, unlocking significant top line growth opportunities in the U.S. (through underpenetrated wholesale and retail channels), deeper product innovation, and category expansion key levers expected to drive international revenue growth and capitalize on the rising global middle class, supporting future revenue acceleration.

Want to see what growth, margins and future P/E need to look like for that valuation to add up? The full narrative lays out the earnings roadmap behind that US$88.25 figure, including how revenue mix, profitability and the discount rate all feed into the model. It is the assumptions, not just the headline target, that make this story interesting.

Result: Fair Value of $88.25 (UNDERVALUED)

However, the story can break if Wrangler and Lee lose relevance with younger shoppers or if Lee’s turnaround in regions like APAC and Europe stalls.

Build Your Own Kontoor Brands Narrative

If you look at the numbers and come to a different conclusion, that is the point. You can build your own view in minutes, starting with Do it your way.

A great starting point for your Kontoor Brands research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.