4-Star Stocks Poised to Pop: Coach

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury handbag maker Coach (NYS: COH) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Coach's business and see what CAPS investors are saying about the stock right now.

Coach facts

Headquarters (founded)

New York (1941)

Market Cap

$16.6 billion

Industry

Apparel, accessories and luxury goods

Trailing-12-Month Revenue

$4.6 billion

Management

Chairman/CEO Lew Frankfort
President/COO Jerry Stritzke

Return on Equity (average, past 3 years)

49.3%

Cash/Debt

$929.7 million / $23.5 million

Dividend Yield

2%

Competitors

Ralph Lauren
Talbots
Tiffany


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 2,519 members who have rated Coach believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, JohnCLeven, succinctly summed up the bull case for our community:

People will always want to display high social status. Coach is not a trend, it is a well crafted, long lasting brand that represents wealth and social status. ... It has sustained epic [return on invested capita] for the past decade and longer. It is a cash cow and a consistently high grower w/ very low capital intensity. ... Coach is truly an all-star company selling at a great price.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Coach may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

The article 4-Star Stocks Poised to Pop: Coach originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Coach. The Motley Fool owns shares of Tiffany. Motley Fool newsletter services have recommended shorting Tiffany. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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